Surrey Business Owner Warns of 1970s-Style Stagflation

Fuel Costs, Inflation, and Growth Concerns Plague Small Businesses

Apr. 10, 2026 at 3:11am

Got story updates? Submit your updates here. ›

A visually striking abstract illustration composed of bold geometric shapes in primary colors, representing the economic challenges of fuel costs, inflation, and stagnant growth faced by small businesses.As fuel prices and inflation threaten to stall economic growth, a Surrey business owner's warning echoes the stagflation crisis of the 1970s.Buffalo Today

Kate Lester, the owner of Diamond Logistics in Surrey, paints a bleak picture of the economic challenges facing small and medium-sized enterprises (SMEs) in the current climate. Soaring fuel prices, rising costs, and stagnant growth have created a perfect storm, reminiscent of the 1970s stagflation era. Lester's perspective highlights the cumulative impact of economic shocks on businesses and the urgent need for government intervention to support SMEs.

Why it matters

The concerns raised by Lester and the Road Haulage Association (RHA) are symptomatic of a broader economic malaise, with the risk of stagflation looming. This situation echoes the turbulent 1970s, a decade marked by high inflation and economic stagnation. Understanding the ground-level challenges faced by SMEs is crucial to developing policies that can support businesses and foster a more resilient economy.

The details

Lester cites the dramatic increase in fuel costs, with a rise of over 25% since the outbreak of war in the Middle East, as a significant burden for logistics businesses. This surge in fuel prices has led to a chain reaction, with the average price of diesel increasing by 29p per litre and petrol prices rising by over 14p per litre. Additionally, Lester has experienced a 30% increase in rent and has been impacted by the rise in national insurance and minimum wage, further straining the financial situation of her business.

  • The fuel price hikes have occurred since the start of the conflict between the US, Israel, and Iran in the Middle East.
  • Lester has been in business for 34 years and states that the post-pandemic period has been the most challenging she has ever encountered.

The players

Kate Lester

The owner of Diamond Logistics, a courier firm based in Surrey, who has 34 years of experience in business.

Road Haulage Association (RHA)

An organization that has sounded the alarm about the spike in fuel prices posing a significant threat to the viability of haulage businesses.

Got photos? Submit your photos here. ›

What they’re saying

“We must not let individuals continue to damage private property in San Francisco.”

— Robert Jenkins, San Francisco resident

“Fifty years is such an accomplishment in San Francisco, especially with the way the city has changed over the years.”

— Gordon Edgar, grocery employee

The takeaway

This case highlights growing concerns in the community about repeat offenders released on bail, raising questions about bail reform, public safety on SF streets, and if any special laws to govern autonomous vehicles in residential and commercial areas.