IoD: ‘Don’t pile on costs when businesses are feeling the pinch’

Responding to latest official inflation figures, showing CPI at 2.7% in April 2017, up from 2.3% in March and the highest rate since September 2013, Stephen Martin, Director General of the Institute of Directors, said:

“Firms across the country have been feeling the pinch of increased costs for some time now so today’s figures will come, regrettably, as no surprise to them. While the topline figure has been heavily influenced by one-off factors like a late Easter and an increase in air fares, the fall in the value of Sterling and higher commodity prices are more concerning medium-term trends.

“Higher inflation is squeezing margins on businesses and the obvious knock-on effect is higher prices. The next government must resist the urge to pile additional costs on business through increased regulation, particularly as they continue to come to terms with recently introduced measures such as the Apprenticeship Levy, an increase in the minimum wage, and the immigration skills charge.”

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