A significant number of small businesses believe that their costs will increase during 2008, new research has revealed.

The survey conducted by Bank of Scotland found that the majority of business owners predict that all costs will rise over the course of the year.

Among those who said costs would rise, 75 per cent said that the price of supplies and raw materials would also increase.

Ivan Matviak, head of Bank of Scotland Business Banking, said that many small businesses will have seen their costs increases “exponentially” in recent years.

“It’s crucial that small businesses seek out the best value by working with service providers that can provide them with the best deal possible,” he remarked.

Mr Matviak suggested that choosing the right bank or utilities provider can help to improve end-of-year profits.

In related news, Paul Schofield of moneysupermarket.com recently said that it is “more important than ever” for gas and electricity suppliers to improve their communication with consumers.

Find out more about how to compare electricity prices and switch electricity suppliers

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