Small and medium-sized firms struggling with ‘a hat-trick of hurt’

Diesel prices have rocketed to above £2 a litre in many areas, increasing transport costs. Photograph: Joel Goodman/The Guardian

Britain’s army of more than a million small and medium-sized businesses are stockpiling raw materials and ordering components six months ahead to overcome supply shortages that prevent them from meeting customer demands.

With construction costs reaching fresh record highs and import prices surging following a fall in the pound, businesses reported that much of their cash was tied up in securing the basic raw materials and components needed to supply customers.