Stagflation fears rise as escalating Iranian war drives up oil price again; UK mortgage rates keep rising – business live

A survey of chartered accountants in the UK and the regions most affected by the Middle East conflict has found that a majority believe their businesses and organisations are vulnerable to supply chain disruptions and higher costs.

In a potentially disturbing re-run of the problems businesses faced at the outset of Russia’s invasion of Ukraine, 56% of nearly 500 ICAEW members polled said they were exposed to the current conflict, while over a quarter (29%) think it’s too early to judge.

The respondents, who tend to be senior staff, including finance directors based in organisations across the world, said higher energy costs and supply chain disruption were “key business concerns”.

Two thirds of UK businesses said they would be affected by higher energy costs (66%) and that government subsidies would be the most effective form of support.

Meanwhile, one of the main analysts of the UK construction sector said the industry needs “to be prepared for the worst” after a 15% year-on-year decline in the number of £100m-plus projects starting on site.

With the sector already in the doldrums, Allan Wilen, economics director at the data provider Glenigan, said:

“From housebuilding to major infrastructure, the shockwaves will be felt as the prospect of lower borrowing costs fade and as operational costs spiral from higher energy costs and reduced access to key structural materials.”