'The weak pound is crippling my company'

Businesses in the West Midlands have been reacting to the pound's falling value against the dollar this week.

The currency touched a record low on Monday, increasing the price of imported goods and services.

The struggling pound was "crippling" for business, said Richard Williams, managing director of Keon Homes.

"Since the mini budget we've been contacted by all our supply chain saying 'brace yourselves guys, costs are going to go up'."

The Staffordshire-based company said it had seen the price of raw materials soar.

"It's all about how we protect ourselves for the future, but unfortunately if my prices go up, the prices for my clients go up."

Richard Williams said the high price of construction materials would be passed on to customers

At Lioncroft Wholesale in Birmingham, a weak pound means it will cost them more to import food products like rice and spices from India and Africa.

They largely trade in dollars.

"Immediately, overnight, the price of our goods coming into the UK has increased and that makes it more difficult to sell, especially at this time when we have a cost of living crisis and there is a lot of pressure on families and households," chief executive Dr Jason Wouhra said.

"We will have to increase their prices and I think it's likely that food price, price inflation will kick in at a more rapid rate," he added.

It comes at a time when the cost of living is already increasing at its fastest rate in nearly 40 years, driven by the cost of food and fossil fuels going up.

By contrast, some businesses could get a boost from a fall in the value of the pound against the dollar or euro.

"We are now exporting to 11 countries," said Gary Seale, managing director if I-Dry.

The company based in Much Wenlock, Shropshire, produces body driers for the care sector.

"Where we normally see maybe one order every two or three months, every single one of our export customers has contacted us straight away - the biggest one being from Holland, and ordered another 30 units," he explained.

Gary Seale said overseas sales had increased

It could also provide some benefit to firms struggling with additional red tape and customs checks introduced after Brexit.

According to recent European figures, exports to the trade bloc declined by nearly 14% in 2021 compared with the year before.

For many businesses last week's mini budget brought plenty of takeaways, including scrapping of planned rises to corporation tax and National Insurance.

But particularly after this week of volatile markets, many now want more support to help grow and to invest.