Four out of five employers (81%) say they have been impacted by the increase in national insurance contributions Higher prices, reduced investment and increased staff costs were among the main effects cited
Four out of five employers (81%) say they have been impacted by the increase in national insurance contributions Higher prices, reduced investment and increased staff costs were among the main effects cited
The jump in UK inflation in April is eye-watering and underscores the growing cost-of-living crisis facing households and the damaging squeeze on firms' ability to invest and operate at full capacity.
Markedly slower growth confirms an alarming loss of momentum for the UK economy in the first quarter, from a strong January outturn to a decline in output in March as surging inflation increasingly weighed on activity.
The British Chambers of Commerce is calling for an immediate emergency budget to deal with the costs crises facing businesses and people throughout the country. It has developed a three-point action plan that would allow firms to keep a lid on rising prices, boost productivity and ease cost pressures.
Higher interest rates will do little to address the global headwinds and supply constraints driving the inflationary surge. It also raises the risk of recession by damaging confidence and intensifying the financial squeeze on businesses and consumers.
The latest data confirms that the UK is in the midst of an unprecedented inflationary surge amid accelerating global price pressures, including from Russia’s invasion of Ukraine.
The BCC’s Quarterly Economic Survey (QES) for Q1 2022 shows inflationary pressures on firms reaching levels never previously recorded in its 33-year history.
The Office for Budget Responsibility’s latest forecasts paint a bleak picture of the UK’s economic prospects over the near-term as the drag effect of rising inflation, supply chain disruption and higher taxes weakens key drivers of UK output.
The Spring Statement falls short of the action businesses needed to see today. While there are some positive announcements that firms will welcome, it did not fundamentally address the huge cost pressures firms are facing.
The latest figures confirm that inflation remains on an historic upward trajectory. This surge will intensify in the coming months as the energy price cap rise, the reversal of the hospitality VAT cut and upward pressure on energy and commodity prices from Russia’s invasion of Ukraine, lifts inflation above 8%.
