Responding to new data showing the consumer prices index rose by 2.5% in the 12 months to December, Muniya Barua, Deputy Chief Executive at BusinessLDN, said:
“Though it’s encouraging to see inflation cooled very slightly in December, prices are still rising faster than the Bank of England’s 2% target, putting the Government’s growth mission at risk as firms wrestle with cost pressures. This challenge will become even more acute later this year as many firms are forced to increase prices in response to hikes to employer national insurance contributions, the minimum wage and business rates.
“That’s why a pro-growth Spending Review is essential. Plans to boost productivity by embracing artificial intelligence are welcome but need to be matched with steps to increase investment in training by setting out a roadmap for implementing a new growth and skills levy.
“A multi-year funding deal for Transport for London is vital to keep the city moving and support its UK-wide supply chain. And greater devolution would also enable local leaders to target investment according to the needs of their region.”