News

Commenting on the inflation statistics for October 2021, published today by the Office for National Statistics, Head of Economics at the BCC Suren Thiru, said: “The latest data confirms that inflation is on a significant upward trajectory. “October’s upturn was largely driven by rising household energy costs following the increase in Ofgem’s energy price cap, rising fuel prices and the partial reversal of the VAT reductions for hospitality and tourism which drove up restaurant and hotel prices."

New BCC data released today from a survey of over 1,000 businesses has thrown sharp focus on the impact of skills and commodities shortages for UK firms, with spiralling prices in evidence.

The latest data confirms that the UK’s economic recovery lost momentum in the third quarter as significant staff and supply shortages limited activity.

While investments announced today will take time to bed in, Government should consider other action that will relieve immediate pressures, particularly on smaller businesses. This should include an urgent review of the shortage occupation list to allow for short-term visas in key sectors, and an SME energy price cap.

The Chancellor has listened to Chambers’ long-standing calls for changes to the business rates system and this will be good news for many firms.

While businesses support the minimum wage, the size of this increase – with less than six months’ notice - will cause significant concern, especially with so many smaller firms already struggling.

Improving the quality and reach of early-stage finance is crucial for levelling up economic opportunity across all nations and regions of the UK

Boosting inward investment into the UK can provide the foundations for our future economic prospects for many years.

Commenting on the inflation statistics for September 2021, published today by the Office for National Statistics, Suren Thiru, Head of Economics at the British Chambers of Commerce (BCC), said: “While inflation is uncomfortably high, the Bank of England must hold its nerve on interest rates. Raising rates at a time of escalating cost pressures and looming tax rises would severely undermine an already fragile recovery. “Although global price fluctuations aren’t typically something in the UK government’s direct control, more needs to be done to help businesses keep costs down and stay competitive. This should include a moratorium on all policy measures that increase upfront business costs for the remainder of this parliament.”

GDP remains some way off pre-pandemic levels and there are clear indications that the economic headwinds caused by labour shortages and supply chain disruption are beginning to bite.