+44 (0) 1908 774320
   
Roger Eddowes

Essendon Accounts & Tax

Home of the Business Godparent ...

Rising labour costs, energy bills and late payments are holding businesses back

Roger Eddowes

CREATED BY ROGER EDDOWES

Published: 13/07/2026 @ 09:00AM

#RisingLabourCosts #EnergyCosts #LatePayments #BusinessExpenses #WeakerCashFlow #TighterMargins

This pressure is feeding straight into weaker cash flow and tighter margins for everyone. Businesses are finding it harder to plan, price and grow when expenses keep climbing faster than demand. It is a messy combination, and it is not easing any time soon ...

Holding businesses back are rising labour costs, energy bills and late payments

Holding businesses back are rising labour costs, energy bills and late payments

Rising labour costs, energy bills and late payments are holding businesses back at exactly the moment many firms need stability most. For many, the problem is not one large shock but a steady build-up of business expenses that chip away at confidence, planning and profit.

Labour is often the biggest line in the budget, so even modest
wage pressure can quickly lift operating costs!

When employers want to protect staff, keep roles filled and remain competitive, they usually have little choice but to absorb at least some of the increase. That is where holding businesses back becomes more than a phrase; it becomes a practical constraint on hiring, investment and day-to-day decisions.

Energy bills are adding strain. Even when prices ease slightly, they often stay high enough to disrupt forecasting and make long-term contracts harder to manage. For firms with tight margins, higher utility bills can mean less money for equipment, marketing, or expansion, illustrating how business constraints affect real-world operations.

Late payments also make the situation worse because they do not just delay income; they disrupt business cash flow. A company may be profitable on paper, but if customers pay late, it still has to cover wages, rent, tax and suppliers on time. That mismatch forces managers to spend more time filling short-term gaps rather than focusing on growth, a subtle yet serious way of holding businesses back.

There is also a knock-on effect across the supply chain!

When one business delays payment, another may need to borrow, trim stock or slow recruitment. Over time, these delays can lead to higher operating costs, reduced confidence and a lower willingness to take on new work. In that sense, holding businesses back is not just about one invoice or one bill; it is about the wider drag on momentum.

The encouraging part is that businesses can still respond with discipline. Better credit control, tighter cost forecasting and more careful pricing can help protect margins without losing customers.

Even so, there remains a very real challenge for firms trying to build something resilient.

Until next time ...


ROGER EDDOWES
Join our mailing list! Click here and be one of the first to know when we publish a new blog post!


Would you like to know more?

If anything I've written in my blog post resonates with you and you'd like to discover more of my thoughts about how rising labour costs, energy bills and late payments are holding businesses back, then do call me on 01908 774320 and let's see how I can help you.

Don't forget to stay updated with our daily social media posts on Facebook.

Share the blog love ...

Share this to FacebookBuffer
Share this to FacebookFacebook
Share this to TwitterTwitter
Share this to Linkedin (popup window)Linkedin
Share this to Pinterest (popup window)Pinterest
Share this to WhatsApp (popup window)WhatsApp

#RisingLabourCosts #EnergyCosts #LatePayments #BusinessExpenses #WeakerCashFlow #TighterMargins

About Roger Eddowes ...

Roger Eddowes 

Roger trained at Edward Thomas Peirson & Sons in Market Harborough before working at Hartwell & Co, followed by Chancery, as a partner. He started Essendon Accounts and Tax with Helen Beaumont in 2014 as a general practitioner with a hands-on approach.

Roger loves getting his hands dirty, working with emerging, small-to-medium and family businesses to ensure they receive the best possible accountancy advice. Roger utilises an extensive network of business contacts to leverage the best guidance and practical solutions.

More blog posts for you to enjoy ...

Click here to view this blog post


HMRC's mandatory direct debit for VAT and PAYE plans explained

Mandatory direct debit for VAT and PAYE could soon become the norm for most businesses. The plan aims to improve collections and reduce errors, but it may create headaches for some businesses, especially those using other pay...

Click here to view this blog post


Are you thinking of employing young workers this summer?

The summer holidays are a popular time for young people to gain their first work experience, and many businesses welcome the extra help during their busiest months ......

Click here to view this blog post


Why Artificial Intelligence is changing recruitment

Artificial intelligence is no longer something businesses are simply experimenting with, and it is rapidly becoming part of everyday life, especially in recruitment. The latest AI hiring trends suggest that this shift will on...

Click here to view this blog post


Growing our team to support yours

At Essendon, we believe that good accounting is about more than numbers. It's about giving business owners confidence that everything is organised, properly handled, and under control ......

Click here to view this blog post


Millions of taxpayers could soon have to pay their tax earlier

Millions of taxpayers could pay their tax earlier under HMRC's proposed self-assessment changes. The move may smooth tax deadlines, but it could also tighten cash flow. For many, the real issue will be how quickly the system ...

Click here to view this blog post


HMRC announces tax simplification changes for employers and businesses

I read with interest an announcement by HMRC about a series of measures designed to simplify the tax system, reduce administrative burdens and make it easier for businesses to meet their tax obligations. While many of the pro...

Click here to view this blog post


Who's going to pay for Burnham's Britain?

Burnham's Britain sounds bold, but the maths still has to work. If taxes rise, borrowing climbs, or spending is squeezed, somebody pays. The tricky part is making the politics add up without breaking the economy ......

Click here to view this blog post


How to spend less and save more without feeling deprived

Want to spend less and save more? My blog post today explains how to spot waste, trim bills, and build better habits without feeling restricted. It also covers budgeting, debt, and practical checks that can quietly improve yo...

Other bloggers you may like ...

Click here to view this blog post


Refer & Earn: Helping others benefit from our daily wellbeing check-ins

Posted by Steffi Lewis on https://www.yourping.uk

Sometimes the best recommendations come from those we trust most. A friend mentions an app that has made life easier. A colleague shares a genuinely u ...

Click here to view this blog post


Networking Skills: The Benefits Of Focus In Your Networking

Posted by Jacky Sherman on https://www.jackysherman.com

Once again this week, I was drawn into a debate about whether to appeal to a wide range of clients or focus on a tight target market. It's a fundament ...

Click here to view this blog post


Business Coaches: Blogging is Your Ultimate Marketing Secret

Posted by Steffi Lewis on https://www.sblogit.com

Unlock your potential with blogging for business coaches, an invaluable tool for sharing expertise while connecting with your audience. Embrace the un ...

Click here to view this blog post


Renovating your home in Milton Keynes? Come and stay with us!

Posted by Emily Freeman on https://blog.shortstay-mk.co.uk

Renovating your home can be loud, messy, and surprisingly draining. You can sidestep the chaos by staying somewhere local that feels settled, private, ...

© 2026 by Roger Eddowes

All rights reserved



All content on this blog, including but not limited to text, images, videos and audio, is protected by copyright. No part of this blog may be reproduced, copied, distributed, or otherwise used without the prior written consent of the author. Unauthorised use constitutes a breach of intellectual property rights.

Please note that many elements of this blog have been created using Artificial Intelligence (AI). As such, content may not always reflect verified facts or professional advice. The information provided is for general interest only and should not be relied upon as a sole source for making decisions, financial or otherwise. Readers are strongly advised to seek independent advice from qualified professionals appropriate to their country and situation.

The author of this blog, YourPCM Limited, and its directors, employees, and authorised agents accept no liability for any loss, harm, or consequence arising from the use or interpretation of content found on this site.

The sblogit.com platform is provided on an “as is” basis. By continuing to view or interact with this blog, you acknowledge and accept these terms. If you do not agree with any part of this notice, please cease using this site immediately.

YourPCM Limited is a company registered in the UK and operates exclusively under the jurisdiction of the laws of England and Wales.