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The rise in power payments have pressured SMEs to make substantial modifications to their operations, based on new analysis. Performed for Paragon Financial institution by Opinium, the survey of over 500 UK SMEs discovered that 67% of corporations had seen their power payments enhance by over 20% during the last twelve months – with almost half (48%) of corporations recording a rise of over 30%.
The rise in power costs has seen SMEs herald a sequence of modifications to their working practices, together with:
- Growing the worth of products and companies (58%)
- Reducing present or deliberate spending (44%)
- Encouraging employees to do business from home (38%)
- Taking out extra finance (33%)
- Reducing manufacturing output (33%)
- Transferring some aspect of manufacturing abroad (30%)
An additional 9% of corporations have seen their power payments enhance by lower than 10%, with 18% reporting a 10-20% rise. Solely 6% of corporations haven’t seen their power payments enhance during the last twelve months.
Commenting on the findings John Phillipou, Paragon Financial institution’s Director of SME Lending, mentioned: “After their very important position in protecting the UK economic system shifting all through the pandemic, SMEs at the moment are dealing with the problem of elevated power costs. As our analysis demonstrates, the rise in power prices is compelling SMEs to undertake new working practices to assist them to adapt to the altering circumstances – however corporations may additionally want to hunt assist to make sure they will proceed to function and assist our economic system recuperate.”
He continued: “Paragon was proud to assist SMEs in the course of the pandemic and we dedicated to proceed supporting them by the present challenges. Whereas the rise in the price of power could also be short-term, our economic system will at all times rely upon a thriving SME sector – and we’re prepared to talk with companies and focus on any additional monetary assist they might require.”
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