Contractors suffer the biggest rise in costs

13 July 2010

Contractors suffered the biggest quarterly rise in costs during the beginning of 2010 since 2005, according to a recent Business Inflation Guide produced by insurance company More Than Business and Warwick Business School.

The guide revealed there was an increase of 2.9% between January and March 2010, compounded by similar figures during the previous three quarters of 2009 for UK contractors.

More Than argues that while the recent budget aimed to generate benefits for small and medium enterprises with cuts in small business tax, there is no immediate relief with small firms impacted by slow-growing markets, continuing difficulties in accessing finance and a VAT increase in 2011.

The company says, regarding inflation, four quarters of consecutive cost rises means contractors' costs have increased by 8.11% over the last year.



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