The year started with a jolt. UK inflation leaped to 3.0% in January, its highest level since March 2024, up from 2.5% in December. The rise reflected sharp increases in food, transport, airfares — and even VAT on private school fees. Core inflation hit 3.7%, services inflation 5%.

That inflation spike put immediate pressure on the Bank of England. Many businesses began to reconsider their hiring plans as a looming £25bn rise in employers’ National Insurance loomed, while some companies warned of coming price hikes and potential freezes on investment.

For business owners considering sale or acquisition, the message was clear: valuations might start to reflect higher cost bases, and buyers could become more cautious. For brokers like us, January underscored the importance of timing — getting ahead of inflation-driven price adjustments could make the difference in deal value.

As always, if we can help in any way, we’re happy to do so.

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*Sources: The Times