With businesses being urged to cut prices for customers to help tackle the rising cost of living, UKBF members have called the proposal “a classic start of a race to the bottom”.
A new taxpayer-funded ad campaign will run later this month calling on UK business owners to slash prices for consumers. The initiative is part of government proposals to help combat the effects of rising prices.
The campaign will reportedly ask business owners to reduce consumer prices by cutting back on things like marketing. The BBC reports that the slogan will promote a message about helping out in tough times, which businesses could display to give them “kudos”.
Reports of the campaign have been largely met with scepticism from UKBF members in this thread. Some members have seen potential, however.
“No chance I would give any thought to reducing my prices, as I'm losing more and more due to sky-high costs, especially petrol. I'd rather close up the business than do that. If anything I am looking to increase my prices,” they said.
@BustersDogs is in the same boat, with no choice but to raise prices to counter inflation: “Considering the cost of fuel is now £2 a litre, I need to put my prices up. I've resisted so far but I've got to do it soon.”
@Mark T Jones added: “As a broad rule, random price cutting is the classic start of a race to the bottom. A lot of businesses are now in a position where they really need to be raising prices in order to survive but will probably be afraid to do so, so will limp along until their hands are forced (one way or another).”
“Who does the government believe is going to pay for these price cuts? The government could cut rates, corporation tax, NI and VAT to bring prices down for consumers. I'll give you a guess as to which of these it will do,” they said.
“Advertising and marketing is done to increase revenue. What revenue, exactly, does this campaign increase, and who does it benefit?”
UKBF member @SillyBill agreed, questioning why the government isn’t doing more to cut the costs that are draining people’s finances:
“Is this a joke? The government sponsoring this initiative increases my employment taxes, bangs up corporation tax and will be engaged in another business rates raid from April 23rd? Why don't they cut their prices (taxes) first given they're the biggest drain on everyone's finances?”
@UKSBD urged people to delay judgement until the campaign had been launched. He asked what people didn’t like about the following paragraph in the BBC article:
“The campaign would be about recognising the efforts of businesses who are trying to help consumers with the rising cost of living, and “amplifying and channelling them” as well as encouraging other businesses to do the same.”
@MOIC also thought the plans had potential, but only if they were aimed at larger businesses who have enjoyed bumper profits in recent years:
“Perhaps this is primarily aimed at the supermarket or energy giants, but certainly not your average business. Increased wages, increased utility bills, increased interest rates, less turnover and less profits will lead to bankruptcy.”
What do you think of the new plans? Get involved in the discussion thread now – you can sign up for free here.
A new taxpayer-funded ad campaign will run later this month calling on UK business owners to slash prices for consumers. The initiative is part of government proposals to help combat the effects of rising prices.
The campaign will reportedly ask business owners to reduce consumer prices by cutting back on things like marketing. The BBC reports that the slogan will promote a message about helping out in tough times, which businesses could display to give them “kudos”.
Reports of the campaign have been largely met with scepticism from UKBF members in this thread. Some members have seen potential, however.
“I’m losing more and more due to sky-high costs”
UKBF member @Rekkovitch rightly pointed to the impact of inflation on small businesses, which has reached its highest levels in over 30 years. This has had a knock-on effect on everything from raw materials to regulatory costs.“No chance I would give any thought to reducing my prices, as I'm losing more and more due to sky-high costs, especially petrol. I'd rather close up the business than do that. If anything I am looking to increase my prices,” they said.
@BustersDogs is in the same boat, with no choice but to raise prices to counter inflation: “Considering the cost of fuel is now £2 a litre, I need to put my prices up. I've resisted so far but I've got to do it soon.”
@Mark T Jones added: “As a broad rule, random price cutting is the classic start of a race to the bottom. A lot of businesses are now in a position where they really need to be raising prices in order to survive but will probably be afraid to do so, so will limp along until their hands are forced (one way or another).”
“What revenue does this increase?”
Meanwhile, @japancool highlighted the government’s advice to cut back on marketing, questioning how businesses were supposed to draw in customers otherwise.“Who does the government believe is going to pay for these price cuts? The government could cut rates, corporation tax, NI and VAT to bring prices down for consumers. I'll give you a guess as to which of these it will do,” they said.
“Advertising and marketing is done to increase revenue. What revenue, exactly, does this campaign increase, and who does it benefit?”
UKBF member @SillyBill agreed, questioning why the government isn’t doing more to cut the costs that are draining people’s finances:
“Is this a joke? The government sponsoring this initiative increases my employment taxes, bangs up corporation tax and will be engaged in another business rates raid from April 23rd? Why don't they cut their prices (taxes) first given they're the biggest drain on everyone's finances?”
“The campaign hasn't even started yet”
Not all UKBF members are critical of the campaign, with many waiting to see what happens when it launches.@UKSBD urged people to delay judgement until the campaign had been launched. He asked what people didn’t like about the following paragraph in the BBC article:
“The campaign would be about recognising the efforts of businesses who are trying to help consumers with the rising cost of living, and “amplifying and channelling them” as well as encouraging other businesses to do the same.”
@MOIC also thought the plans had potential, but only if they were aimed at larger businesses who have enjoyed bumper profits in recent years:
“Perhaps this is primarily aimed at the supermarket or energy giants, but certainly not your average business. Increased wages, increased utility bills, increased interest rates, less turnover and less profits will lead to bankruptcy.”
What do you think of the new plans? Get involved in the discussion thread now – you can sign up for free here.
