East Midlands Chamber has renewed calls for greater support for the region’s businesses as it warns firms could look to increase their prices after inflation rose more than was expected by economists to 3.4%.
The latest annual inflation data from the Office for National Statistics is the first rise in inflation in five months, up from 3.2% in November.
East Midlands Chamber Director of Policy and Insight Richard Blackmore said: “While inflation is generally expected to ease later this year, right now we’re moving further away from the Bank of England’s 2% target. That isn’t the direction we need to be going in, especially as East Midlands firms have cited inflation as their greatest concern, along with corporate taxation, in our Quarterly Economic Survey.
“Four out of ten East Midlands businesses reported they are considering increasing their prices in the survey – a figure we’ve seen creep up over the last two quarters – which really underlines the weight of pressure firms are under right now, not least when you consider the effect of high business rates too.
“What business needs is supportive measures – that means urgently reconsidering business rates that currently impact sectors like hospitality and manufacturing disproportionally; it means investing in infrastructure; it means speeding up planning decisions that are painfully slow and with unemployment having risen to 6% in the East Midlands, skills investment is essential.
“The East Midlands is home to outstanding businesses and innovation and is a region long established for making, creating and innovating but despite these strengths much of that potential is held back.
“The Chamber’s recently published Framework for Growth tells political leaders what we need addressing in the East Midlands and outlines exactly how to unlock the region’s full potential.”
To view East Midlands Chamber’s Framework for Growth in full, click here.
