Responding to new ONS inflation figures, which show that the consumer prices index rose by 3.0% in the 12 months to January, Muniya Barua, Deputy Chief Executive at BusinessLDN, said:
“Above target inflation is adding to cost pressures on businesses, making it harder for them to invest, hire and drive growth.
“Against this backdrop and following last week’s disappointing growth data, the Government needs to do more to stimulate the economy.
“That includes ensuring a proposed visitor levy for London focuses on measures to promote tourism and looking again at reintroducing VAT-free shopping for international visitors, to bring us in-line with European competitors. It should also rethink upcoming changes to the business rates system which threaten to stifle investment.”