Cumbria Chamber Calls For Growth Measures As Business Costs Soar
Cumbria Chamber of Commerce is calling on the Government to take action to support businesses and stimulate economic growth after the latest figures showed inflation rising to 2.9 per cent in July.
The latest Consumer Prices Index figures from the Office for National Statistics showed inflation increased during July, adding to concerns about the cost of running businesses across the UK. Cumbria Chamber said domestic policy driven costs have placed significant additional pressure on companies over recent years, particularly small and medium sized enterprises.
The organisation said a typical small or medium sized business has seen its costs increase by more than 70 per cent since 2016, with approximately a quarter of that increase occurring since the Autumn 2024 Budget. It said these pressures are making it increasingly difficult for businesses to invest, expand and create employment.
Cumbria Chamber of Commerce managing director Suzanne Caldwell said businesses were continuing to feel the effects of inflation, with higher household energy bills contributing significantly to July's increase. She also warned that energy costs could continue pushing inflation higher in the coming months.
Energy costs remain a particular concern for businesses because commercial customers are not protected by the domestic energy price cap. Rising energy bills can therefore place significant pressure on operating costs, particularly for companies that rely heavily on electricity or gas.
The chamber is asking businesses to use its Cost Stack Calculator to compare their current costs with those faced in 2016. Companies can submit their figures anonymously, allowing the organisation to build a clearer picture of the financial pressures being experienced across the business community.
The initiative comes as businesses continue to face a combination of higher operating costs, inflationary pressure and uncertainty around future investment. The chamber believes that gathering evidence directly from businesses will help demonstrate the scale of the challenge facing companies.
A recent survey by the British Chambers of Commerce found that 66 per cent of businesses identified inflation as a concern. The figure highlights the continued importance of controlling costs at a time when companies are already dealing with increased financial pressures.
The chamber is now calling on the Government to use the upcoming Budget as an opportunity to introduce measures that can reduce the cost of doing business and create greater confidence among employers. It wants businesses to have more room to invest and plan for future growth.
Caldwell said the Government should provide businesses with greater breathing space by introducing ambitious measures focused on trade, investment and productivity. The chamber believes these areas will be important in supporting companies and strengthening economic growth.
The call comes amid wider concerns about business investment and the ability of companies to absorb rising costs. National business organisations have also been calling for policies aimed at reducing the cost burden and creating conditions that encourage firms to invest.
For businesses across Cumbria, the chamber's campaign is intended to provide a stronger collective voice on the pressures affecting companies. The information gathered through the calculator could help demonstrate how changes in business costs have affected firms over the past decade.
The chamber is encouraging businesses of all sizes to take part and provide anonymous information about their costs. It hopes the results will help strengthen the case for Government action ahead of the next Budget.
The organisation's message is that reducing unnecessary costs while supporting trade, investment and productivity could give businesses greater confidence to expand, invest in new opportunities and contribute to wider economic growth.
Got a news story or tip to share? Contact our editorial team by emailing news@lakelandpost.co.uk or call us directly on 0333 090 2080.