Cost-of-Living Resources and Support

Cost of Living – what it means for you and your business 

With the financial stresses that people are faced with every day due to rising energy prices, increasing inflation, wage adjustments, and changes to tax and benefits, it is impossible to avoid the challenges of rising costs in personal and business life.  Many businesses are still recovering from the effects of the COVID19 and as the pandemic disproportionately effected women and their businesses, the cost-of-living crisis has amplified these challenges. Factors such as the gender pay gap, and the gender savings gap make these challenges harder to navigate for women and women-led businesses. Therefore, knowing what help is out there for you and your business can make all the difference.   

What is causing the cost-of-living crisis? 

The cost of living is impacting businesses in several ways, one of which is the issue of inflation causing the general costs of running a business to rise significantly. 

If you are a business with employees, this can cause added pressure on wages as your staff will be looking for higher wages to keep up with how the cost of living is affecting them in their personal lives.

Disruption in the supply chain is another issue that is putting businesses in difficult positions. The cost of transporting goods and materials is at an all-time high with fuel prices soaring, which may force businesses to look at alternative options such as sourcing materials and goods locally.

Energy costs will impact businesses so assessing your business’s energy use is extremely important to discover the ways to cut costs.  

GrowBiz survey reveals crisis of confidence

In a recent survey commissioned by GrowBiz, over 80% over respondents named those stated above as major issues for their business, causing fears of business survival.  Respondents said that substantial changes to operating may have to be made to their businesses in order to manage the crisis. The crisis is having an impact on mental health with 44% that stated the crisis is impacting their general health and wellbeing. 

How can businesses respond?

There are ways in which you can assess and moderate how the cost of living is affecting your business. Are there areas in your business where costs can be cut by finding a cheaper alternative? Assess your energy use, which may mean changing energy supplier or encouraging simple habits such as turning off equipment when it is no longer in use.

Sourcing locally can help avoid the high expenses of transporting goods and may also help to support other local businesses who could be struggling as well.

Remember the importance of your customers and maintain a good relationship with them. You could introduce loyalty schemes, price caps on certain products/services or give the option of paying in installments to help spread the cost. This means whilst helping your customers at times of difficulty you are also encouraging them to return to you, which benefits your business.

Funding may be another option to consider. Listed below are resources you can use to find out about the different options for finance available.

If you are an employer, it is also important to support your employees. Consider increasing financial support, offering more flexible working and providing an outlet for employees to voice their concerns about the cost of living, so you can provide appropriate needs-based support where necessary. 

One of the most important things for businesses to do in uncertain times is to stay informed. Make sure you are aware of the help and support available as this will allow you to be able to do what is best for your business:  

• GrowBiz – support services and funding assistance  
• Find Business Support – help finding funding and advice 
• Small Business Commissioner – help with getting paid and invoices  
• British Business Bank – how businesses can tackle the cost-of-living crisis
• Business Gateway  – rising costs support
• Scottish Enterprise – advice on sustainble business and sources of funding
• Highlands and Islands Enterprise HIE – support for the rising cost of doing business
• Business in the Community – how businesses can respond to the cost-of-living crisis 
• Scottish Parliament Information Centre SPICe  – constituency support for enquiries related to the cost of living and the cost of doing business

Other helpful resources

As well as in a professional capacity, the cost of living will be affecting many households this year. Finding the help that is available can be hard so here are a few places you can find support: 

• Tackling the cost of living crisis – gov.scot (www.gov.scot)  
• Help for Households – Get government cost of living support  
• Get help with the cost of living – Citizens Advice  
• Energy Cost Calculator UK | GoCompare