Support on energy costs and business rates vital for businesses as inflation rises to 3.5 per cent – Chamber

Business leaders in Greater Birmingham are calling on the Government to reduce the cost of doing business with support on energy costs and business rates, following the rise in inflation to 3.5 per cent in the year to September.

According to the Office for National Statistics (ONS), the rise follows the 3.1 per cent figure announced for the year to August and marks the third successive increase.

Surging fuel prices made the largest upward contribution to the monthly change while restaurants and hotels made the largest, partially offsetting, downward contribution.

Overall motor fuel prices have risen 29.8 per cent in the 12 months to September 2026, compared with a rise of 23 per cent the previous month.

Paige Bowyer (pictured), policy and research analyst at Greater Birmingham Chambers of Commerce, said: “Inflation rising to 3.5 per cent in September is a reminder that price pressures remain a significant challenge for businesses, with higher fuel prices contributing to the latest increase.

“With the Autumn Budget approaching, this adds to concerns about the costs firms will face in the months ahead.

“Businesses are already dealing with sustained cost pressures, and continued uncertainty around the conflict in the Middle East risks adding to inflationary pressures, particularly through energy costs.

“The Bank of England will be watching these developments closely as it considers its next steps on interest rates.

“With the Budget just days away, there is an opportunity to address some of the pressures holding businesses back.

“Measures to reduce the cost of doing business, particularly through support on energy costs and business rates, would help firms plan ahead and support investment.

“Our latest Quarterly Business Report shows inflation remains the biggest concern for businesses across Greater Birmingham. The Budget must help ease these pressures and create the conditions for firms to invest, recruit and grow.”

Register for the Q3 Quarterly Business Report happening tomorrow at Birmingham City University, which will explore the latest data from Greater Birmingham businesses and showcase initiatives helping entrepreneurs and firms to start, scale and grow.