Troubling times | Cost-of-living crisis and paying wages among biggest concerns for UK firms

Business leaders across the UK say the cost-of-living crisis is the leading risk to their performance, according to a new study.

The annual Gallagher Business Risk Index asked 1,000 leaders at UK businesses to identify the top risks affecting their firm. The current cost-of-living crisis came first, identified as the biggest concern by more than one in five businesses.

When asked specifically why the cost-of-living crisis is their top risk factor, the top influencing factors were the current inflation issues (cited by 53% of affected businesses), increases in the cost of energy (38%) and more generally challenging economic conditions (33%).

In 2022, the top risk was the cost of materials, which, although still a risk named by many businesses, has fallen away when compared to other factors which have significantly risen.