New survey: 57% of UK small businesses predict rising costs over next 3 months

The recent rise in inflation reflects fresh concerns highlighted by UK small businesses in a new survey commissioned by Intuit QuickBooks. 

The latest quarterly Small Business Insights survey shows more than half of UK small businesses (57%) predict rising costs over the next 3 months. Among them, almost two-thirds (64%) fear the impact this will have on their business—including 1 in 10 (10%) who said further cost increases would be “impossible to manage.”

International trade uncertainty is likely contributing to their concerns. More than 2 in 5 (42%) said they currently buy products overseas, with the top three markets being the EU, China  and the US (24% buy from the EU, 17% buy from China, 16% buy from the US).

Many are also concerned about cash flow. Almost half of the respondents (47%) report cash flow challenges, with almost 1 in 10 (9%) reporting that cash flow is currently “a major problem” for the business. The top three solutions they’re turning to are their cash reserves, the business owner’s personal savings, and credit cards.

Similarly, more than half (51%) say poor financial or resource management is holding their business back. For example, more than 1 in 5 (22%) said they can't accurately predict costs or profit margins when creating estimates, and more than 1 in 6 (16%) blamed a lack of insight into key performance indicators.

On a more positive note, the survey shows more than 3 in 5 (62%) now use AI regularly (up from 41% in July 2024) and more than three quarters (77%) of these businesses say AI is boosting their productivity (up from 39% in July 2024). More than 3 in 5 (63%) of these businesses have implemented AI widely across their business, including 1 in 6 (15%) who say AI is now a “core component” of their operations.

Keep reading

Get all the data from the Small Business Insights survey, updated every three months.

This content is for information purposes only, is provided free of charge and it is intended to be helpful to a wide range of businesses. Because of its general nature the information cannot be taken as comprehensive and they do not constitute and should never be used as a substitute for legal, accounting, or tax advice. Additional information and exceptions may apply. No assurance is given that the information provided is comprehensive, accurate or free of errors. Intuit does not have any responsibility for updating or revising any information presented herein. Any reliance you place on information found on this site or linked to on other websites will be at your own risk. You should consider seeking the advice of independent advisers and always check your decisions against your normal business methods and best practice in your field of business.