New research shows Budget must tackle rampant inflation among small firms
Soaring cost of fuel, energy and raw materials needs to be curbed
Inflation is rampant among small businesses and chancellor George Osborne must take drastic action to address the problem in today’s Budget.
These are the principal conclusions of a new study from MORE TH>N BUSINESS, which highlights just how much disruption has been caused by the recent rises in fuel, energy and materials costs.
According to the research, these rises have pushed annual small business inflation up to 5% in the final quarter of 2010 – far above the Bank of England’s 2% target – and punctured consumer confidence in many sectors.
Prices have risen sharply in many sectors; for example, the cost of raw materials increased by nearly 5% in the final three months of last year.
Mike Bowman, Head of MORE TH>N BUSINESS, said: “These latest inflation figures suggest that George Osborne’s Budget on Wednesday needs to deliver measures for small businesses that will help alleviate some of the pressure from increasing core costs.
“With energy and material costs forecast to continue to rise there is unlikely to be any respite in the near future. We welcome any pro-enterprise measures that look to help small businesses cope in these very difficult economic conditions.”