Wednesday 17 August 2022
Richard Burge, Chief Executive of the London Chamber of Commerce and Industry (LCCI) said:
“The latest figures from the ONS will be a significant worry for businesses across the country but particularly in London, where inflation is disproportionately higher. It is abundantly clear we are teetering on the brink of a major economic crisis as businesses are struggling to stay afloat while they grapple with challenges including extortionate energy prices, rent and tax increases, and a severe drop in consumer spending.
This latest set of figures comes on top of the latest analysis from the National Institute of Economic and Social Research on the underlying price movements impacting upon inflation.
Small and medium sized enterprises, the lifeblood of London’s economy, will feel the weight of inflation more acutely than larger businesses, who have the cash reserves to protect themselves from sudden and dramatic increases in business operating costs. It is clear thar high inflation is hitting all parts of the supply and services ecosystem.
Only a credible economic plan and immediate pro-business measures from the new Prime Minister, such as reducing business rates and an energy price cap, will enable businesses to cope with rising prices.”
ENDS