Targeted support over business and energy rates needed as firms continue to face pressures with inflation rise – Chamber

Business leaders in Greater Birmingham are calling on the government to provide targeted support in energy and business rates as inflation rose to 3.1 per cent in the year to August.

According to the Office for National Statistics, inflation accelerated from 2.9 per cent in the 12 months to July.

The main drivers behind this include increased petrol and diesel prices as the Middle East conflict continues to disrupt global oil supplies. The cost of flying also increased following summer getaways.

Emily Stubbs (pictured), head of policy at Greater Birmingham Chambers of Commerce, said: "This rise in inflation highlights the continued pressures facing both businesses and households.

“While higher fuel and transport costs have been the main drivers this month, ongoing global uncertainty means many firms will be concerned about further price rises feeding through into energy and operating costs.

“With inflation moving further away from the Bank of England's target, businesses will be watching closely for tomorrow's interest rate decision and the wider outlook for borrowing costs. Stability remains crucial.

“Firms need the confidence to invest, create jobs and seize growth opportunities.

“As attention turns to the Autumn Budget, the Government should focus on easing the burden on business through targeted support on areas such as energy and business rates, helping firms to continue driving growth across our region.