Midlands businesses fear for the future as pound value plummets

Tim Goodall says this is the most 'worrying' time in the 17 years he has been in the business

Companies across the Midlands have said the falling pound has had a "very painful" impact on their businesses.

Tim Goodall of Islabikes Ltd, Ludlow, noticed cost prices skyrocket by five per cent in a matter of hours after further tax cuts were announced by the Chancellor on Monday.

Flower supplier Jeff Large also said his firm had been hit hard by the situation.

Both now fear their businesses will struggle to absorb rising costs.

The prime minister said the tax cuts were right for the economy.

On Monday, the value of the pound fell to a record low against the dollar. It has also fallen against the euro.

Mr Goodall, the managing director of the Shropshire bike shop, said 95% of stock was imported from abroad in US dollars before being sold in pounds.

"A weak pound is really painful for us," he explained. "Business has been a lot slower than we are used to."

Prior to the announcement in the so-called mini budget, Mr Goodall said cost prices had already increased by more than 20% since January.

Mr Goodall says he has imported 95% of his stock from abroad

Mr Goodall said the majority of his products was shipped from South East Asia and, due to supply chain issues during the coronavirus pandemic, the firm had committed to an advance order of stock which was yet to be paid for.

"We are at the whim of the exchange rates," he said.

In a bid to not add further pressure to customers struggling with the cost of living, Mr Goodall said he had chosen not to increase his prices.

Jeff Large says 'it's all cost, cost, cost'

In Birmingham, flower wholesaler Jeff Large reported a decline in business over the last two to three months, putting him in the worst situation he had experienced during 28 years in the industry.

He owns Birmingham Landscape Plants And Flowers Ltd and imports all his products from abroad, meaning, he says, poor exchange rates will hit him hard.

'It's all cost, cost, cost'

"We've got to put our prices up and people out there don't have more money to spend," Mr Large said.

"Demand is definitely going down. Everything is dictated by a price. It's all cost, cost, cost."

On top of rocketing energy bills and high fuel costs, he said he was worried about the future.

He said the "feel-good factor" in the industry 20 years ago, when making sales was relatively easy, had gone, with the job having become a "lot harder" as flowers doubled or even tripled in price.