Rising inflation piles the pressure on Shropshire businesses
Shropshire Chamber of Commerce said today’s sharp rise in the rate of inflation highlighted the growing pressure that businesses are coming under to keep their running costs under control.
The latest report from the Office For National Statistics showed inflation jumping from 2.5% to 3% in January, to its highest figure in nearly a year.
The British Chambers of Commerce said it underlined the ‘real challenges’ businesses were currently facing from inflationary pressures in the economy.
Ruth Ross, chief executive of Shropshire Chamber, said: “Businesses across all sectors in the county are having to deal with significant cost burdens which threaten to fuel inflation further.
“And with these figures coming just weeks before the introduction of higher employer National Insurance contributions and a rise in the minimum wage too, these are difficult times for many employers.
“Businesses are crying out for cost-pressures to be eased so that they can invest, recruit and trade – driving forward the economic growth we all want to see. Today’s figures suggest they are facing quite the opposite.”
The latest inflation rise was much higher than predicted by economists, and was said to be driven by the rising cost of food and non-alcoholic drinks.
Stuart Morrison, research manager at the British Chambers of Commerce, added: “Our latest research shows a spike in the proportion of firms expecting to raise prices following the Autumn Statement, while business confidence has dipped to 2022 levels.
“Overall, 75% of businesses cited labour costs as a main driver of price hikes and yesterday’s wage data is another reminder of that.
“The inflation landscape, coupled with ongoing global risks and the looming threat of US tariffs, is likely to give the Bank of England more food for thought, as it charts a cautionary path to further interest rate cuts.”
Shropshire Chamber of Commerce is currently collecting data for its latest quarterly economic survey, quizzing business owners on a topics including sales forecasts, international trade, recruitment, training, cashflow, and confidence levels.
It is open to any business of any size in Shropshire or Telford & Wrekin. Companies do not need to be a member of Shropshire Chamber to take part.
All submissions are anonymous. Closing date for submissions is March 1. To take part, see www.surveymonkey.com/r/ShropChamQES-Q12025
Shropshire’s results are fed into the national survey by the British Chambers of Commerce, which is used by the Bank of England and other relevant bodies and economists.
Ruth Ross said: “It’s really important for us that as many businesses as possible take time to fill in this survey.
“It is completely anonymous – so that you can speak freely - and takes only a few minutes. Every single business voice matters. The greater the voice, the greater the influence we can have to support the businesses of Shropshire.
“This is part of the largest and most respected quarterly business intelligence survey in the country, and the BCC asks us to gather business sentiment in Shropshire and Telford & Wrekin to feed this into the data.
“The results are used by multiple Government departments, as well as the Bank of England, to understand the business climate. We want it to paint as accurate a picture as possible of the local economy.”
Shropshire Chamber’s previous quarterly survey revealed some of the most downbeat forecasts from the local business community since the pandemic, with fears of job losses and company closures.
Asked about the November Budget’s impact on the local business community, 72% described it as negative, and not a single employer felt it was positive.
The proportion of businesses now seeing taxation as a ‘fear factor’ in the coming months has jumped by a huge 40%, and there has been a 14% fall in businesses reporting rising sales.
