Responding to the news that the Consumer Price Index (CPI) stood at 6.7 per cent in the year to September 2023, unchanged from 6.7 per cent in August, Martin McTague, National Chair of the Federation of Small Businesses (FSB) said:
“This result will cause unease among small firms, who had been hoping that inflation’s recent downward trend would continue.
“With fuel price rises a major factor in stickier-than-expected inflation, small businesses will be nervous that higher pump prices could undermine their efforts to rebuild their finances in the wake of the cost of doing business crisis.
“These latest inflation figures will give little comfort to small firms who had hoped to see the base rate begin to fall as soon as possible.
"We hope the Bank of England will bear in mind that the full impact of its recent interest rate increases has yet to work its way fully through the system, and – with insolvency numbers this year due to hit heights last seen in 2009, following the global financial crisis – the risk of a downward spiral of closures and debt must be avoided at all costs.
“Small businesses will now be looking to the upcoming Autumn Statement for policies which will support them.
“Most pressingly, the 75 per cent business rates relief for small hospitality, retail and leisure firms in England must stay in place past its March expiry date, as its loss will be devastating to those hard-hit sectors. A wider overhaul of business rates has long been promised and we are keen for it to materialise.
“We want to see a ‘kickstart’-style scheme focused on health brought in, to ease labour market shortages and help people fulfil their ambitions.
“There’s no economic recovery without small firms, and their concerns must be top of mind for policymakers who are serious about getting the economy going again.”
