According to the latest Quarterly Economic Survey from the British Chambers of Commerce, confidence among firms is continuing to decline and 52% of businesses are planning price rises in the first three months of 2026.
With many SMEs now reviewing their pricing plans, solicitor in Harper James’ commercial team, Adam Khattak, shares his take on how to approach price changes safely and fairly:
“With costs continuing to climb, many businesses are considering price rises in early 2026. However, the legal and reputational risks associated with price changes will depend on whether your customers are consumers or businesses.
“For B2B contracts, review your existing agreements and terms carefully. Some contracts may permit price increases, but often only if a formal process is followed – such as providing notice in a specific form and within a set timeframe. Fixed-term contracts may not allow mid-term increases altogether. Increasing prices outside the agreed terms can result in contractual disputes, delayed payments, or the risk that customers will argue the changes are unenforceable.
“Contracts with consumers are subject to stricter requirements under UK consumer protection law. In addition to ensuring that the contract expressly allows you to increase prices, businesses must communicate any proposed changes transparently and with sufficient advance notice.
“The Digital Markets, Competition and Consumers Act is also introducing further standards for transparency, especially for subscription-based models – making it easier for consumers to understand, exit, or adjust their subscriptions. Any unilateral changes to price risk are considered unfair or unenforceable if they are not clearly set out and properly communicated.
“Regardless of your customer base, use plain language, set out the timing of changes, and ensure that any additional fees are presented up front – ‘drip pricing’ is increasingly under regulatory scrutiny. For consumer contracts, always offer a clear method for customers to cancel or change their arrangements if they do not accept the new price.
“The smoothest price changes happen when legal, finance, and customer-facing teams coordinate from the outset, ensuring that new prices are rolled out consistently and explained clearly to all affected customers.”