Over Half of UK Businesses with Supply Chain Concerns Expect Higher Material Costs, ONS Figures Show

ONS data from late July 2026 reveal that 52 per cent of UK businesses with 10 or more employees that flagged supply chain concerns expected sourcing costs to rise, with transport cost worries close behind at 47 per cent.

More than half of UK businesses with 10 or more employees that reported supply chain concerns in late July 2026 expected the cost of sourcing materials to be impacted, according to figures published by the Office for National Statistics. The 52 per cent figure for materials cost expectations sits alongside a near-identical reading for transport — 47 per cent of the same group anticipated transportation costs to be affected. Both figures were described by the ONS as broadly stable compared with June 2026, suggesting the pressure has not eased but has not sharply worsened either.

The data come from the ONS Business Insights and Conditions Survey (BICS), which tracks high-frequency indicators on business activity, supply chains, prices and expectations, and is used by government, the Bank of England and analysts to assess current economic conditions. It’s worth being precise about what the figures actually cover — they apply only to businesses with 10 or more employees that reported supply chain concerns, not to all UK businesses.

For Kent, the numbers carry particular weight. The county’s economy is built around logistics hubs, distribution centres and the Port of Dover, making local manufacturers, construction firms, agri-food businesses and retailers unusually exposed to shifts in transport costs and international sourcing pressures. If businesses pass those costs on, residents could see higher prices for goods — especially anything reliant on imported inputs or cross-Channel freight.

The broader backdrop helps explain why expectations remain elevated. In June 2026, 31 per cent of businesses with 10 or more employees said they were concerned about international conflict affecting their supply chains over the next year, and 22 per cent flagged shipping disruption as a specific worry. And earlier in the year, 9 per cent of businesses reported experiencing actual global supply chain disruption in March 2026 — up from 3 per cent in February and the highest proportion since December 2022.

UK CPI inflation stood at 2.8 per cent in May 2026, with GDP growth of 0.6 per cent in the first quarter of the year. So the economy is growing, but cost pressures on the supply side have not gone away — and the July BICS data suggest businesses aren’t expecting relief any time soon.