Responding to new ONS inflation figures, which show that the consumer prices index fell to 2.8% in the 12 months to April, Muniya Barua, Deputy Chief Executive at BusinessLDN, said:
“This dip in headline inflation will likely only provide brief respite before the full impact of the Iran war filters through to businesses, consumers and the wider economy.
“A volatile geopolitical outlook, political uncertainty in Westminster, and high employment costs have left many firms pressing pause on hiring and investment.
“Whatever the outcome of a potential leadership contest, the best way that the Government can make people feel better off is by refocusing on growth. Honouring its manifesto commitment to overhaul the business rates system, ensuring any new visitor levy for London is used to attract tourists to the city, and establishing a new Office for Tax Competitiveness to ensure we remain internationally attractive should all be priorities over the coming months.”