With the UK’s supply chains riddled with labour shortages and continued Covid-19-related hang-ups, a third of mid-size firms have been forced to reduce their offering.
More than 34 per cent of businesses already trimmed their product lines and services by mid-September – before the fuel crisis had gripped the nation, according to accountancy firm BDO.
Another 31 per cent of firms admitted that they would have to follow suit “unless the situation changes within the month”.
It comes as an increasing number of smaller energy suppliers collapse under the rising prices of gas and electricity, while supermarket’s bleed sales due to food shortages.
The country’s largest supermarkets – Tesco, Sainsbury’s, Asda and Morrisons – have lost out on more than £2bn sales this year so far thanks to food shortages, according to data shared with trade magazine The Grocer.
“Brexit, global supply chain issues and the long tail of Covid-19 has created a perfect storm for UK businesses,” BDO partner Ed Dwan said, adding that: “After navigating the challenges of the pandemic and hoping for some respite, businesses have found themselves facing more major disruption, with those across almost all sectors reporting staff shortages.
“The recent fuel shortage is another addition to a long list of headaches for business and will have only made it harder for them to fill their shelves and offer consumers a full range of services.”