Diana Parry, CEO at Cheltenham-based charity, The ED Society: “As a small charity, we rely solely on fundraising and donations to support families affected by Ectodermal Dysplasia in the UK. Soaring inflation is having a severe effect on everyone and people are trying their hardest to cut costs. Our supporters have always been there for us in our time of need, but we fear there is only so much families and individuals can take, and our biggest worry is to see a huge decline in donations and fundraising. I believe the current financial crisis will have a worse effect on charities than the pandemic. More worryingly, a recession may be on the cards, as households are already cutting back on costs and outgoings. The cost of living is a big concern for everyone in the UK right now, which will cause a significant reduction in income from charitable giving.”
Dr Jackie Mulligan, expert on the Government’s High Streets Task Force and founder of the local shopping platform, Shopappy: “Millions of families and small high street businesses are in an unimaginably difficult place. This terrifying level of inflation is a double whammy for the family businesses that line the UK’s high streets. They’re being hit in the tills and in their own pockets at the exact same time. For now, many are resisting raising prices but at some point something will have to give. Our message to consumers is, if you have less to spend, spend it wisely, not with the online giants but with the local businesses that are the bedrock of your communities. Right now, they are depending on your custom more than ever. I hope that the Government will step in to help the thousands of family businesses that are struggling to stay afloat.”
Debbie Porter, Managing Director of Bakewell-based Destination Digital Marketing: “The current financial crisis is having a far wider impact on business than COVID-19 did, and it feels like a kick in the teeth after two years of the pandemic. During the pandemic, businesses in our local community adopted a collaborative approach to help each other get through the crisis. Although the outlook was grim, the small business community pulled together to help each other through. Cut to the current situation and costs have been rising at an uncontrollable rate across the board in 2022, and so many small businesses are now in a race for survival. Each new supply chain price rise is painful. The inflationary price rises we put through earlier in the year to help us maintain our income in real terms have been swallowed up and now seem insignificant. This can’t continue. If we all keep putting up our prices to cope with increased costs, it will keep us on an inflationary roundabout. The government needs to step in the break this cycle.”
Monique Oliver, owner of Monique Oliver Art & Design: “For the past two years, I’ve been hanging onto my business by my fingernails. Covid had a major impact on my business with all the galleries closed and exhibitions and shows cancelled, along with lessons and workshops to the general public. In addition to a lower income, the cost of supplies has risen significantly. The availability of supplies is also incredibly erratic and now, like other small business owners, I’m having to address the cost of living crisis, which is already causing record-low sales. I’ve been forced to diversify my product range, to allow for more accessible prices. Very recently, I felt I had no alternative other than to take out a personal loan so I know I can cover personal and business rent payments for the next six months. I have long-standing health issues and the stress and anxiety from all the financial pressure have wrecked havoc with my symptoms resulting in regular flare-ups. I genuinely fear for the future. This will be my last year in my own business unless things turn a corner soon.”
Seena Gosrani, owner of London-based jeweller, Bottlebee: “Inflation at this extraordinary level is really hitting my business hard. The price of gold and silver have skyrocketed and I will have to increase my prices to keep in line with increasing supplier costs. The competition in this sector is fierce and a lot of people are selling as a hobby rather than a business so it’s hard to compete. Jewellery is not a need, it’s a want, and as inflation increases, people will look to buy mass-produced items rather than something that is handmade and unique to them. But mass-produced items hit the masses hardest.”
Dalia Hawley, skincare manufacturer at Dalia Botanique: “Inflation is exactly the blow small businesses didn’t need after two years of the pandemic. The prices of ingredients have started to rise and will continue to do so. This is incredibly difficult since, as a new business, I will eventually have to pass on costs to the consumer. I will have to up my prices and try and spread them across all my products. My new range is cold-processed, which at least means I won’t need to use as much electricity to produce my cosmetics. I’m worried as people, including myself, are understandably trying to spend less and save money and my products may now be seen more as luxury items than necessary purchases.”
