Small firms fear cost of living damage A survey of small businesses by Barclaycard has found that 51% were concerned that rocketing prices would dent consumer spending and they may have to increase prices in response, making them less competitive. A tight labour market is putting further pressure on businesses, they reported, with some struggling to hire new staff. However, small firms are hopeful that the four-day bank holiday weekend for the Queen’s Platinum Jubilee will bring a surge in revenues. Six in 10 SMEs said they were forecasting 10% higher sales on average between April and June compared with the same quarter a year earlier. Colin O’Flaherty, head of SME at Barclaycard Payments, said: “After an exceptionally tough time for the hospitality and leisure sector, it’s encouraging to see that businesses have seen revenues rise over the last few months, despite a challenging economic climate.”