(20 Apr 2026, 2:53 pm)morritt89 wrote With fuel costs, I imagine that larger operators will have the advantage over smaller operators in relation to costs. Will we see more smaller operators give back contracts or close their doors because of this (not just in the North East, but UK wide)? I'd imagine so unfortunately.

Let's not forget, GNE handed back Durham Council school contracts after we got a pay rise and the contracts started losing money.

They will, in that they have a much larger purchasing power and can avert risk by hedging their fuel price at a much competitive level than say City, who I believe like many independents, pay retail price. There's of course nothing to stop an SME entering into a hedging agreement, but not only is their purchasing power a tiny fraction of the big boys, they also haven't got the contract security to enter into anything more than a 12 month contract. 

Pay awards are something else that should be in a risk forecast when bidding for contract work, though I've heard a similar argument myself plenty of times!