Reacting to the latest ONS inflation data published this morning, Stuart Morrison, Research Manager at the British Chambers of Commerce said:
“Businesses will be hoping October’s inflation rate of 3.6% is further evidence that inflation may now be past its peak. That’s in line with forecasts by the Bank of England and the BCC.
“However, the economy remains vulnerable, and firms are under no illusion about the huge cost pressures they continue to face. Our latest survey data shows inflation is the second biggest concern for businesses after tax. The two are intrinsically linked with many firms telling us the employer NICs hike has forced them to put up prices.
“Business can’t be in the firing line again at next week’s Budget. The national insurance hike, announced in last year’s statement, has fuelled inflation, hit investment and damaged job opportunities. Those are not the ingredients for the sustained growth we all want to see.
“The Chancellor must use her statement next Wednesday to ease the cost burden for business, not add to it. In short, no more tax on business.
“Recent speculation about a new cap on pension salary sacrifice schemes is worrying, as it would add more costs for employers and could limit investment. The Budget must also help tackle the skills crisis, help exporters and turbocharge infrastructure projects.
“The economy will continue to stutter unless business costs come down, and firms are given the right tools to invest, recruit and trade.”