UK inflation hit double digits in July, according to figures published this morning. The Consumer Price Index rose by a record 10.1% in the 12 months to July, up from 9.4% in June.
Figures from a member survey in June highlighted 48% of NTE businesses are “barely breaking even” and a further 20.2% stating that they’re losing money.
44.7% of businesses are “unsure” if their business will survive the next 12 months, with 20.8% stating they are “not confident.”
54.8% say their businesses have “little scope” to increase prices within their local market, with a further 20.8% stating they have no scope whatsoever, as consumers have less disposable income due to domestic living cost increases.
Michael Kill CEO of the NTIA has warned on Wednesday that a quarter of a million jobs are now at risk and many businesses face collaps within “the next six months.”
He said, “Inflation reaching double digits this morning at 10.1% in the last 12 months to July, up from 9.4% , puts further pressure on businesses, placing over a quarter of a million jobs at risk and one in five businesses on the brink of failure in the next 6 months.”
“We are seeing businesses handing the keys back to landlords every week, as operating costs become completely unsustainable.”
“Time is running out for the Government to intervene, at this moment we need a decisive leader who will stop escalating energy prices, and give further relief to struggling businesses by reducing VAT and extending Business Rates relief.”