The pound has fallen in value by around 16% against the dollar since the EU referendum result last June. Since then it has affected the way many companies do business.
A survey from the British Chambers of Commerce has found that over half (54%) of small to medium sized businesses plan to increase their prices because of the weak pound. The BCC asked 
around 1,500 companies what they expected and were planning for the next year in business.
Roughly around the same amount of businesses said that the weakened pound was having a negative effect on their profitability. 68% said that they expect the cost of doing business will go up in 2017.
Imports and Exports
The BCC has described the vote to leave the EU as a “double-edged sword”.
Due to the changes in the pound’s value, one in four exporters have said that they have seen a positive effect on their business. However, about the same amount had seen a negative impact.
For importers, the story hasn’t been as beneficial. Rising import costs are “squeezing SMEs” margins, the BCC has said.
Director General of the BCC, Dr Adam Marshall has highlighted inflation as an “important concern for businesses over the coming year”.
“The depreciation of sterling… has been the main tangible impact that firms have had to grapple with since the EU referendum vote,” he said.
“For firms that import, it’s now more expensive, and companies may find themselves locked into contracts with suppliers and unable to be responsive to currency fluctuations.”
Economic forecasts
This all comes after changes to The Bank of England’s forecasts. The Bank of England has forecasted inflation at 2% this year. This is higher than their previous forecast made in November of 1.8%.
On the other hand, the bank also said that they expected the economy to grow by 2%, which is an increase from their previous forecast that the economy would only grow by 1.4%.
The Bank also said that they had seen “relatively few” signs that consumer spending had been hit by Britain’s vote to leave the EU. However, the Bank also predicts that the economy will eventually slow by 2018, with expectations that the economy will grow by just 1.6%.
How will the value of the pound affect your business? Do you plan to increase prices yourself? Let us know your thoughts in the comments section.