Ed Rimmer, CEO of Time Finance:
“While we have become used to the news of inflation rising month on month, more and more businesses will feel the strain and struggle to make ends meet. The latest rise will only make this worse.
“When inflation hit 9.1% in June, one in ten businesses we spoke to told us that they’re unable to meet their financial commitments and one in five said they were struggling to remain competitive without increasing their own costs. These were worrying statistics at the time, and it’s unsettling to consider how much worse this will get if the Government doesn’t intervene soon and provide businesses with some breathing room to regain financial control.
“The upcoming campaign encouraging businesses to reduce their prices fails to tackle the root of the issue and will not only be a threat to their survival, but the economy. Businesses simply don’t have the financial capacity to absorb their rising costs, and without proper and viable support their overheads will be squeezed ever tighter. Not only will they struggle to keep up with operational costs such as paying their employees or suppliers, and buying stock or materials, but some sadly just won’t survive.”