The British Chambers of Commerce (BCC) is warning that businesses are “facing a perfect storm” with cost pressures, following data published by the Office for National Statistics (ONS) on Wednesday morning.
The Chancellor’s employer’s national insurance hike and the increase to the minimum wage including the US President’s sweeping tariffs, will lead to over half of companies putting up prices over the coming months.
The BCC has said that Monday’s UK-EU “reset” deal is good news for British businesses including the trade deals with the US and India.
Stuart Morrison, research manager at the BCC said, “Businesses are facing a perfect storm of cost-pressures which is fuelling inflation alongside rising household bills. While April’s jump was expected, the scale, to 3.5%, is concerning.
“With the national insurance hike, minimum wage rise and global tariffs, our research shows 55% of businesses are expecting to put up prices in the coming months.
“Firms urgently need to see a clear tax roadmap identifying when the burdens of national insurance and business rates will ease. Upcoming strategies on industry, trade and infrastructure must live up to business expectations and help drive investment.
“On the global front, Monday’s UK-EU reset deal was good news for business. Coupled with recent trade announcements with the US and India, it provides a pathway to growth.
“But with inflation clouds gathering, the Government must accelerate efforts to help business, not ease off.”
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