Responding to the latest inflation data, published by the Office for National Statistics, Suzanne Caldwell, Managing Director at Cumbria Chamber of Commerce said:

“Businesses continued to feel the heat from inflation last month, with CPI rising to 2.9%, further fuelling the cost of doing business crisis.

“Higher household energy bills fuelled by the Middle East crisis played a significant part in July’s CPI rise, and as the Bank of England has warned, energy is likely to push up inflation further in the coming months. Energy remains a major issue for businesses, who aren’t subject to a price cap.

“The British Chambers of Commerce (BCC) Quarterly Economic Survey (QES) latest survey shows 66% of businesses cited inflation as a worry in Q2.

“The cost pressures facing businesses are made clear in the BCC’s cost-stack model launched earlier this month. Margins are being squeezed hitting investment and recruitment.

“We strongly encourage businesses in Cumbria to complete the UK Business Cost Stack Calculator. Since 2016, domestic policy-driven costs have added significant pressure to UK businesses.

“For a typical SME, these costs have risen by more than 70%, with around a quarter of that increase coming since the Autumn 2024 Budget.

“By using the Cost Stack Calculator, you can see how your business’s costs compare to 2016 and submit your figures anonymously to help demonstrate the true scale of cost pressures facing British businesses. By sharing your response with the BCC, you help build an evidence base on the real domestic policy-driven cost increases facing UK businesses. Your figures are anonymised in any published analysis.

“The government must use the Budget as an opportunity to back business, cut costs and deliver growth. The Chancellor needs to give businesses the breathing space they desperately need by outlining ambitious measures to drive forward trade, investment and productivity.”

Cumbria Chamber of Commerce is an accredited member of the British Chambers of Commerce.