Business & Technology
UK firms brace for May price rises amid freight pressure
More than 40% of UK retailers and transport and storage firms plan to raise prices in May, according to Office for National Statistics survey data highlighted by Parcelhero. The figures mark a sharp increase from April.
The latest ONS Business Insights survey found that 41.1% of transport and storage companies expect to increase prices this month, along with 40.5% of retailers and 35.2% of manufacturers. The data points to broad pricing pressure across sectors closely tied to consumer demand and the movement of goods.
In April, 18.6% of transport and storage companies, 25% of retailers and 21.5% of manufacturers planned price increases. That means the share of transport and storage firms planning rises has climbed by 22.5 percentage points month on month, compared with 15.5 percentage points for retailers and 13.7 percentage points for manufacturers.
The comparison with March is also stark. That month, 10.5% of transport and storage firms increased prices, along with 24.6% of retailers and 13.5% of manufacturers, suggesting pressure has intensified over a short period.
Rising costs
The survey also showed many businesses reporting higher input costs. Comparing March with February, 50.6% of transport and storage firms said the price of goods and services they bought had risen, as did 50.9% of retailers and 48.5% of manufacturers.
Many businesses also reported weaker trading. In March, 26% of transport and storage businesses said turnover had fallen, compared with 27.2% of retailers and 25% of manufacturers.
Parcelhero linked rising costs and pricing plans to disruption associated with conflict in the Middle East. Among companies that experienced global supply chain disruption in March, 49.9% of retailers and 48.5% of manufacturers cited conflict in the Middle East as a factor. Across all sectors, 46% pointed to conflict in the Middle East as a reason for supply chain disruption in March, 34 percentage points higher than in February, according to the ONS.
The ONS data also indicated wider strain across the economy. Economic uncertainty was cited as affecting business by 27.6% of transport and storage companies, 43.9% of retailers and 37.4% of manufacturers. Across all sectors, this was the highest proportion reported since the question was introduced in April 2022.
Energy and freight
Energy costs featured prominently among the reasons businesses are considering price increases this month. They were cited by 34.1% of transport and storage companies, 42.9% of retailers and 45.2% of manufacturers.
Transport and haulage costs were also a major factor. The figures showed 41.6% of transport and storage companies said these costs were causing them to consider raising prices, while 36.4% of retailers and 40.6% of manufacturers said the same.
The transport and storage sector is central to domestic distribution and international trade flows. Any increase in freight, shipping or aviation costs can quickly move through supply chains and into shop prices, adding to pressure on businesses already facing subdued demand.
David Jinks, head of consumer research at Parcelhero, said the latest data pointed to mounting pressure on both companies and households.
He said: “The results of the latest ONS Business Insights survey spell bad news for both British industry and consumers. 41.1% of transport & storage sector companies say they plan to increase their prices this month, together with 40.5% of retailers and 35.2% of manufacturers.
“To put these price increases into perspective, only 18.6% of transport & storage companies planned price increases for April, together with 25% of retailers and 21.5% of manufacturers. That’s a 22.5 percentage point increase in the number of transport & storage firms planning increases over last month, a 15.5 percentage point increase among retailers and a 13.7 percentage point increase among manufacturers.
“The situation is even gloomier when compared with March, when the impact of the conflict was only just beginning to bite. In March, only 10.5% of transport & storage firms increased their prices, together with 24.6% of retailers and 13.5% of manufacturers.
“The planned price rises for this month are not surprising when we look at the increase in the cost of services and goods that companies are now facing. Comparing March with February, 50.6% of transport & storage firms reported an increase in the price of goods and services they bought in March, as did 50.9% of retailers and 48.5% of manufacturers.
“The bad news didn’t stop there. As the impact of the conflict hit, 26% of transport & storage businesses reported that turnover decreased in March, together with 27.2% of retailers and 25% of manufacturers.
“There is no mystery over the source of escalating prices and falling demand. Of those companies that experienced global supply chain disruption in March, 49.9% of retailers and 48.5% of manufacturers cited conflict in the Middle East. Across all business sectors, 46% cited conflict in the Middle East as a reason for experiencing global supply chain disruption in March – a 34 percentage point rise from February, according to the ONS.
“Businesses across all sectors face ongoing challenges created by the conflict. 27.6% of transport & storage companies, 43.9% of retailers and 37.4% of manufacturers said economic uncertainty was impacting their business. Across all business sectors, that’s the highest proportion reported since the question was introduced in April 2022, according to the ONS.
“Looking specifically at the factors causing businesses to consider raising their prices this month, 34.1% of transport & storage companies named energy costs, as did 42.9% of retailers and 45.2% of manufacturers.
“One final cost increase facing British businesses is in transport, because of disruption to the Strait of Hormuz and to international shipping and aviation across the Middle East. 41.6% of transport & storage companies said this was an issue that had caused them to consider raising prices this month. 36.4% of retailers and 40.6% of manufacturers also cited transportation or haulage costs as factors causing them to consider increasing prices during May.
“Unfortunately, the economic impact of the conflict does not look likely to lessen any time soon. The fragile ceasefire between the US and Iran is currently under increased threat over the Strait of Hormuz blockade, while international supply chains will face increased costs and disruption for months, even if the truce holds.”
Jayden, 13 launched Jay’s Bakes from his home in Taunton Road in Bicester on Saturday, June 20.
His late nan, a keen baker herself, was the inspiration behind his passion, as well as time spent helping his uncle with his catering business.
Over the last 18 months he has honed his skills by preparing sweat treats every day after school.
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Determined to turn his hobby into something more, Jayden spent two and a half months researching requirements, gaining his Level 2 food hygiene certificate and officially registering his business, mostly without adult intervention.
After four days of preparation, the business officially launched.
Customers were treated to a wide selection of homemade goods, including M&M cookies, Kinder brownies, Biscoff cookies, Victoria sponge trays, lemon drizzle cups and viral ‘dot cakes’.
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His Kinder brownies proved particularly popular, and by the end of the day he had sold out of everything, taking £210.
Despite feeling “excited and a bit nervous” beforehand, Jayden said the opening was a success, with a strong turnout and positive feedback shared on social media.
His favourite moment came when he officially opened the shed by cutting the ribbon.
Supported by his mum, stepdad, grandparents and uncle, Jayden first began selling from a table in May before building and painting his now-signature blue cake shed.
He now plans to continue baking and selling regularly, bringing his creations to the local community.
Lidl has been given planning permission to build its ninth supermarket in Oxfordshire, despite concerns over flooding.
Aldi opened in Didcot in 2015 and has a supermarket at the Jubilee Way roundabout but shoppers in the town have had to wait over a decade for Lidl to follow.
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South Oxfordshire District Council has now backed plans by the German retailer for a new supermarket in Abingdon Road.
Former Didcot mayor Mocky Khan said: “This give the residents of Didcot more choice, especially when you consider the cost of living environment we have at the moment.
“The town is growing with more new homes being built, and with more growth it’s good to have a wide variety of supermarkets to fit all budgets,”
The plans for the new supermarket were first submitted in 2024.
Didcot Town Council previously objected to the scheme, on the grounds of a lack of flood risk mitigation measures, along with the county council who said there was “insufficient information”.
The town council noted there are “several flooding incidents in the area, especially when the Marsh Bridge water pumps fail”.
But in a report by planning officers granting permission to the supermarket, those issues have now been addressed by Lidl.
The officers said the proposals “largely accord” with the policies around planning, and more can be done to “break up” the car park with greenery.
Planning officers chose to let Lidl build the new supermarket subject to conditions.
They said in a report: “Balanced against this policy conflict is the fact that this is a previously developed site, which is currently in a dilapidated state.
“The proposals represent a significant improvement on the current underutilisation of the site and on its appearance.
“The National Planning Policy Framework and Local Plan set out significant support for the reuse of previously developed land.
“As stated in the applicant’s planning statement, there have been previous enquiries as to the redevelopment of the site that have not come to fruition.
“Given this, finding a viable use for the site is a clear benefit which I consider to be of substantial benefit.”
Thirty-four residents had objected to Lidl’s plans, highlighting concerns over extra traffic, there being no need for another supermarket in the town and there being more appropriate locations to build in their view.
Didcot already has an Aldi store just off Broadway and a Sainsbury’s, M&S Foodhall and Asda.
The nearest Lidl to the proposed site are in Lupton Road, Wallingford, and Marcham Road in Abingdon.
Three people wrote in to support the new Lidl, recognising the benefits of a discount food store and the further jobs it will create.
Lidl has said its proposals for a Didcot supermarket would deliver 40 full-time equivalent jobs as well as further employment during the construction phase.
No opening date was given by the retailer, while the developer is currently on site progressing with the enabling works.
A spokesman said: “We’ve seen demand for our affordable, high-quality products continue to rise in Oxfordshire, and we are committed to serving more communities in the area.
“Our new store will create around 40 new jobs and build on our continued growth.
“We’re excited to be a step closer to opening this store and thank everyone who has supported us on our journey so far.”
It also said the £12m investment would work with the 6,300 new homes allocated to be built, as per the local plan.
Dalcour Maclaren, a specialist in utilities and infrastructure, announced the news on June 22, following a detailed assessment of its operations, including governance, employee wellbeing, environmental impact, and social responsibility.
James Neil, CEO of Dalcour Maclaren, said: “This is a fantastic achievement for Dalcour Maclaren.
“B Corp status gives us the official badge that recognises everything that matters most to us in our culture, our values, and how we make decisions for our people and our clients. We thrive on doing things differently at DM and B Corp absolutely endorses this.”
The certification means the company meets rigorous standards of social and environmental performance, transparency, and accountability.
Dalcour Maclaren now joins more than 10,000 B Corps worldwide and over 2,600 in the UK, including well-known names such as The Guardian, Innocent Drinks, Patagonia, and The Big Issue.
Chris Turner, CEO of B Lab UK, said: “Welcoming Dalcour Maclaren to the B Corp community is hugely exciting. Its commitment to doing business differently will be an inspiration to others and will help spread the notion that success in business is as much about people and planet as it is profit.”
Dalcour Maclaren operates across the UK and Ireland, supporting major projects in energy, water, transport, and digital infrastructure. The company’s services include land, planning, environment, stakeholder engagement, and geospatial services.
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