With inflation one of the greatest concerns of the region’s firms, rumoured tax hikes at the Autumn Budget must be avoided, businesses must be supported with reform to rates and given incentives to invest, East Midlands Chamber has said.
The latest inflation data from the Office for National Statistics covers the 12-month period until September 2025 and is unchanged from July and August. The level remains above the government’s 2% inflation target and alongside corporate taxation ranks top of concerns reported by East Midlands businesses in the Chamber’s Quarterly Economic Survey.
East Midlands Chamber Director of Policy and Insight Richard Blackmore said: “Stagnant inflation keeps the cost of doing business high and puts pressure on firms to consider price rises. The 3.8% level inflation has held at for three months in a row is still far too high and even if it hasn’t risen, it is far above the government’s 2% target.
“Economic growth is sluggish, with GDP having risen only 0.1% in August and firms in the East Midlands have shown in our Quarterly Economic Survey they are hesitant to invest. It is therefore essential the Autumn Budget is supportive of business.
“Tax hikes are already rumoured for the Budget on 26th November and were they to be applied to businesses – as last Autumn when employers were hit with announcements of increased National Insurance contributions and a higher national living wage – firms would again be left making tough decisions.
“Business rates need reform, firms need to be given incentive to invest and there must be no tax increases applied to them. The Budget is a clear opportunity for the Chancellor to be fully supportive of business.”
View East Midlands Chamber’s Quarterly Economic Survey results for Q3 2025 here.
