Responding to news that CPI stood at 4.0%, up from 3.9% in November, Martin McTague, National Chair of the Federation of Small Businesses (FSB), said:
“Seeing inflation inch up marks a disappointing start to 2024. It was a challenging end to last year, and now businesses are bracing themselves for more difficulties that lie ahead.
“The lowering of the consumer energy price cap last October provided a temporary respite for householders. Importantly, business tariffs fall outside this cap, leaving many battling with heightened utility bills.
“Raising the Employment Allowance to tackle the bite of rising labour costs, and increasing the VAT threshold to £100,000 to increase business potential could both be momentous steps forward. Similarly, rolling out tax-free shopping could reel in international visitors.
“Despite today's rise in inflation, the Bank of England should take care not to leave interest rates too high for too long, as high rates drive up the cost of business debt, adding further to the pressures faced by small businesses.”
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About FSB
As the UK’s largest business support group, FSB is the voice of the UK’s small businesses and the self-employed. Established over 40 years ago to help its members succeed in business, FSB is a non-profit making and non-party political organisation that’s led by its members, for its members. As the UK’s leading business campaigner, FSB is focused on delivering change which supports smaller businesses to grow and succeed.
FSB offers members a wide range of vital business services, including access to finance, business banking, legal advice and support along with a powerful voice in Government. Each year FSB also runs the UK’s Celebrating Small Business Awards. More information is available at www.fsb.org.uk. You can follow us on twitter @fsb_policy and on Instagram @fsb_uk.