East Midlands Chamber has commented after inflation fell to 1.7% in the latest estimated figures published by the Office for National Statistics.
The figure, for the year until September, is below predictions from most analysts and is the lowest since 2021.
East Midlands Chamber Director of Policy and Insight Richard Blackmore said: “With the pressure businesses continually face to increase prices with the high cost of doing business, an easing in inflation with bring some comfort and, being below the 2% target set by the Bank of England, suggests an interest rate cut is on the horizon when they meet next month.
“Inflation was cited as the second biggest concern to businesses in the East Midlands after corporate taxation in our latest Quarterly Economic Survey. With high energy costs, this lower-than-expected level of inflation could well be short-lived. It’s worthy of note that while nearly seven out of ten businesses in the East Midlands expected to be able to hold their prices over the next three months, the rest of respondents in the Quarterly Economic Survey felt they might need an increase in prices over the next three months.
“As the Autumn Budget approaches, I urge the new government to prioritise the six asks we’ve outlined for the East Midlands in our Budget Submission to the UK Government. Business rates need reform, the VAT registration threshold needs to be looked at, we need a strengthened trade strategy which should include finance for export, while investment is needed in a number of areas like Green Growth to allow the East Midlands to thrive.”
Summary of East Midlands Chamber’s six key requests for the government:
- Skills Investment and Apprenticeship Levy Flexibility
- Support for the Planning Skills Fund
- Investment in Transport and Infrastructure
- Reform of Business Rates and VAT Registration Threshold
- Strengthened Trade Strategy and Export Finance
- Investment in Green Growth
To view East Midlands Chamber’s Quarterly Economic Survey for Q3 2024 click here.
To view East Midlands Chamber’s Budget Submission to the UK Government click here.
