Issue #112 - Conflict, crises, and increasing costs ☝️
Why global chaos makes things more expensive 🌍 | What influences UK gas prices? 🔥 | How to get renewable energy for business 🍃 | How do you save energy at your business? 💡 | Words | Tunes | More
Why global chaos makes things more expensive 🌍
Welcome to Issue #112 of The Backbone - the fortnightly newsletter from Bionic.
Before we begin, we know that our struggles may seem insignificant when compared to those who face literal bombardment every day. But there’s no escaping the fact that global events directly affect us here in the UK. And we’ve wanted to do a quick explainer on why this is for ages, so here it is.
⛓️ Supply chains are global
Many of the things we buy in the UK, including food, fuel, tech, and clothes, are made or sourced overseas. If a country that makes or supplies key materials or goods is hit by war, natural disaster, or a political crisis, it can disrupt production or transport. This leads to shortages and often higher prices.
Example: The price of olive oil has shot up recently. This is because major producers like Spain, Italy, Greece, and Turkey have experienced prolonged droughts, heat waves, and extreme weather, which have drastically reduced olive yields. Spain’s production dropped by around 50% in 2023, doubling global prices
🔥 Energy prices are tied to global markets
Oil and gas are traded globally, so if something disrupts supply (like a conflict in the Middle East or sanctions on a big oil-producing country), prices can spike everywhere, especially in the UK, where we import a lot of our energy. In the first quarter of 2025, the UK's net import dependency was 47.0%, an increase of 3.2 percentage points compared to the same period in 2024.
Example: When Russia invaded Ukraine, global gas prices soared because Europe relies heavily on Russian gas. That drove up UK energy bills and increased transport and manufacturing costs. The same could happen if conflict in the Middle East continues. You can find out more about that in this guide.
💸 Currency fluctuations
If the pound weakens against other major currencies, like the dollar or euro, imports become more expensive, even if nothing else changes. Global uncertainty often affects currency markets.
Example: If the UK is considered unstable (take Brexit as an example), international investors may pull out. This can lower the value of the pound, meaning imported goods cost more.
🌐 Global demand and competition
If vital products, such as computer chips, oil, or wheat, are in high demand globally, prices can increase for everyone. As more countries compete, this can see demand outstrip supply, and cause prices increases. Even if supply can meet demand, an increased volume of bidders can still push prices up. This is because prices are not only set by how much stuff there is, but also by what people are willing to pay for said stuff.
Example: The recent flare-up in tensions between Israel and Iran drove a sharp surge in crude oil prices, as traders feared disruptions to production or shipping routes, like the Strait of Hormuz. As a result, petrol prices climbed beyond long-term averages, and energy bills began inching upward again.
📊 Investor confidence and speculation
Markets don’t just react to what’s happening now, but they also react to what they think might happen. If investors expect disruption, they often raise prices in anticipation, especially on essentials like food, oil, or metals.
Example: Earlier this year, speculation around high US tariffs on copper (Trump proposed 50% tariffs) caused a surge in global copper prices, as traders predicted significant supply disruption.
In other (better) news, domestic energy prices have dropped since we last caught up, as the new price cap kicked in on July 1. Here’s a reminder of what it means (or what it doesn’t mean) for your business 👇
🤝 COMMUNITY
Join our community of small business superheroes 🦸♀️
Small business owners are the superheroes of the high street. But small business owners rarely get their voices heard. Now there’s a place to chat, share advice and help each other through the lows and highs of running a business. To get involved, scan or click the QR code above or click the button below to sign up.
🗞 READ
What influences UK gas prices? 🔥
There are many reasons why energy prices fluctuate, particularly business gas prices. This means it can sometimes be difficult to predict your energy bills and budget accordingly. Even if you don't use gas at your business, electricity prices are directly linked to gas prices. Read on to find out why.
How to get renewable energy for business 🍃
Generating your own energy is one way to battle price volatility. But installing renewables comes with an upfront cost, and you won’t see an immediate return on your investment. To find out what’s involved, including rough costs and payback times, check out our guide.
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🗣 SHOUTOUT
#BionicBusinessStory - 5 businesses, 1 question 🤔
Using less energy means your business can cut its utility bills, lower its carbon footprint, and contribute to a healthier planet. It can also be a smart way to boost reputation as customers can be drawn to eco-conscious businesses. We asked five business owners about their secrets to being more energy-efficient. Here’s what they said.
Bionic - How do you save energy at your business?
🍦 “I did lots of things, like replacing my light bulbs with energy-saving ones. I put timers on some of the electrical equipment that needs to be on at certain times, which has meant I'm saving two or three hours a day's worth of electricity.” Corrie Hill, Mrs Chill’s Ice Cream Parlour
🏋️♂️ “We made all our lighting LED. Lighting this place alone was quite significant, so that in itself dropped our energy bills. In terms of heating, we basically have none. We had 17 radiators that we got rid of, and there’s just one left in my sister’s office, which she refuses to get rid of. It’s an initial outlay, but you save so much money in the long run. We had around 400 bulbs, which were 20 watts each, the new ones are about four watts. So, it’s a huge energy saving.” Mick Povall, Gravity Health and Fitness
🍻 “In terms of energy use, we've installed some new kit via Heineken, as they supply our beer. This kit means we can turn the cooling settings in the cellar on and off as opposed to just leaving it on constantly. Those kinds of technology solutions are really handy.” James Gadsby Peet, The Star of Greenwich
💪 “Hybrid is a very energy-efficient gym, so there's no cardio kit plugged in. Most pieces of equipment are battery operated and can be recharged - there are only about ten things which need to be plugged in on a daily basis - and all the lighting I've got has been changed to super-efficient LEDs. I did a lot of research on energy costs, different providers and different contract lengths, which initially felt like a lot to get involved in. But actually, now, when the electricity bills coming through, it's something that is paying dividends back to me.” Chris Harrison, Hybrid Fitness
🍺 “I keep an eye on contract prices, and then in day-to-day life, we just make sure to turn off everything at night. In the winter months, we can turn off the big chiller in the cellar. Little shortcuts like that can make a big difference.” Kate Davidson, The Old Ivy House
Want to read more small business stories? Head over to Bionic 🦾
📊 BUSINESS
Get your business costs sorted 💷
Bionic is the comparison site for your small business. We compare a range of business essentials to help you save time, money, and hassle.
Our tech-enabled team will answer all your questions in simple terms and help you find the best deal on business energy, insurance, phone, broadband, or finance. No jargon. No-fuss. #BeABionicBusiness 🦾
🎧 LISTEN
Playlist 🎶
Summer festival season is well and truly upon us. We’ve had Glastonbury, it’s Wireless this weekend, and then the behemoths of Leeds and Reading, along with Latitude, Kendal Calling, Bestival, and more. But for the bucket-hatted, 90s indie kids here at The Backbone, Oasis is the only ticket in town this summer. Les (said bucket-hatted, 90s indie kid) put this comprehensive Oasis playlist together and, unlike the Oasis Live 25 tour, it inlcudes loads of absolute bangers that were released after 1997.
Podcast 🎙
It sometimes feels today’s world has learned no lessons from the past. In that spirit, we bring you the Lions Led By Donkeys podcast - a military history podcast that takes a light-hearted look at the worst military failures, inept commanders, and crazy stories from throughout the history of human conflict.
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🚫 STOP
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