Small firms hit by rising inflation

Commenting on the Consumer Price Index (CPI) which rose to 1.2% in November, Paul Miles Rogers, Warwickshire & Coventry Chairman at the Federation of Small Businesses, said:

“Our members have so far managed to absorb the increased costs resulting from inflationary pressures but the effects are now beginning to bite. Many small businesses rely on road travel to transport goods, receive supplies and for their staff to get to work so the rising cost of petrol is a major concern.

“The sustained devaluation of the pound has already hit many small firms hard. Recent FSB research shows that in the third quarter of 2016, the number of small businesses citing exchange rates as a cause of rising business costs jumped from 5 per cent to 21 per cent.

“This is happening during a period of domestic economic uncertainty and a whole set of rising business costs such as the National Living Wage, pensions auto-enrolment and changes to dividend taxation. We want Ministers to focus on measures that will help boost growth and jobs – like increasing the Employment Allowance and putting quarterly tax reporting plans on hold.”