Copy article

Inflation and your business - September 24

ended 17. September 2024

Ahead of tomorrow's highly anticipated inflation data, as a small business or charity, does it feel like inflation has eased off or is it still having an impact? That could be in the raw materials you buy, customers spending less as they are feeling the pinch, or donors giving less for the same reasons? Technically, inflation, at 2.2%, is only just above the Bank of England's 2% target but if it feels higher to you, tell us about it and we'll share your views with the media tomorrow AM at 07:00 when the numbers drop. In the meantime, if you'd like to try Newspage Platinum at 50% off for three months, upgrade to Platinum and get unlimited News Alert responses and edited responses using the discount code: PLATINUM50OFF

2 responses from the Newspage community

Copy all

Copy

Sam Kirk
Managing Director at J-Flex Rubber Products
Whilst increases to raw materials and utilities have been lest frequent - and limited to single-digit - over the last 6-9 months, I think SME's can expect to come under further pressure to keep pace with the public sector pay increases that have featured quite prominetly in the news recently. I feel most employees will be expecting significantly more than a 2.2% increase when it comes round to their next annual review.
Copy

Alison Boutoille
Founder at CityStack
Speaking daily with numerous publicans as we run our initiative to support independent pubs and help Londoners socialise within their budget, it’s impossible to overlook the severe impact inflation is still having on their businesses.

A combination of reduced spending, driven by tighter personal budgets, and rising operational costs presents a significant challenge for the hospitality sector. On top of that, the ongoing staff shortages are causing further disruption. Many pubs are struggling to retain employees, who can no longer afford the cost of living in London.

These issues, compounded by outstanding debts incurred during the pandemic and high business loan rates, make it increasingly difficult for pubs to stay afloat. This is heartbreaking for the landlords, who have worked tirelessly to create welcoming spaces, and for the communities who are losing vital social hubs.

The uncertainty surrounding their businesses prevents them from having any long-term vision.