East Midlands Chamber has warned strong challenges remain for firms and support is needed despite inflation slowing more than economists anticipated, to 2.8%.
The latest estimated figure from the Office for National Statistics covers the 12 months to April 2026 and is down from 3.3% for the 12 months for March.
East Midlands Chamber Director of Policy and Insight Richard Blackmore said: “What we need to see is continuous and sustained easing in inflation – a trend, not a temporary blip – which is what this drop to 2.8% for the 12 months to April is most likely to be.
“The lowered energy price cap will have helped slow inflation for now but the Middle East conflict is continuing to push up fuel prices so the figure is highly likely to creep up again, heading further from the Bank of England’s 2% target – that’s no good for business.
“Inflation is one of the top concerns of firms in the East Midlands, alongside corporate taxation and business rates, shown in data captured by our Quarterly Economic Survey for the region and adds to the overall pressure firms face, often leading them to consider price increases.
“To mitigate rising energy costs, I urge policymakers to do two things right now – increase support packages and look again at business rates – two areas where a positive impact can be achieved in easing pressure on firms, if properly addressed. Business rates hit manufacturers, hospitality and smaller businesses hardest and are totally disproportionate. These are fixes that Government should be prioritising straight away to reduce the huge burden on business.
“The Chamber’s Framework for Growth – a landmark publication we released at the end of 2025 – outlines a set of specific actions across areas like business rates reform, energy support and skills investment, which would help tackle unemployment, now at 5.5% in the East Midlands. Implementing the asks we’ve set out in that key document would significantly alleviate pressure on business so we can reach a point where firms are ready and incentivised to invest – that’s essential.”
To view East Midlands Chamber’s Framework for Growth in full, click here.
To view East Midlands Chamber’s Quarterly Economic Survey for Q1, 2026 click here.
