Businesses facing 'unprecedented cost pressures', warns BCC

06 Jan 2022

The British Chambers of Commerce (BCC) has warned that businesses are facing 'unprecedented cost pressures', with inflation predicted to surge.

However, firms also worry that another rise in interest rates will set back the economic recovery from the pandemic. The BCC said there was already strong evidence of an economic slowdown in the final quarter of 2021 before the Bank of England (BoE) raised interest rates in December.

Then the BoE raised interest rates from 0.1% to 0.25%, but also raised their inflation forecast to 6% for 2022.

The BCC's survey showed one in four of the 5,500 firms questioned were worried about rising interest rates. Additionally, a record proportion of three in five expected their prices to increase in the next three months.

Supply chain disruption also remained a continuing theme across many sectors.

Suren Thiru, Head of Economics at the BCC, said: 'Our latest survey suggests that the UK's economic recovery slowed in the final quarter of 2021 as mounting headwinds increasingly limited the key indicators of activity.

'The persistent weakness in cash flow is troubling because it leaves businesses more exposed to the economic impact of Omicron, rising inflation and potential further restrictions.'

Home | Contact us | Site map | Accessibility | Disclaimer | Help |

© 2024 Penn Management Services. All rights reserved. | Company Number: 03655701

Penn Management Services, 1 & 2 Heritage Park, Cannock, Staffordshire WS11 7LT
We use cookies on this website, you can find more information about cookies here.

In accordance with the disclosure requirements of the Services Regulations 2009, our professional indemnity insurer is Allied World Assurance Company (Europe) Limited, of 20 Fenchurch Street, 18th and 19th Floors, London EC3M 3BY. The territorial coverage is worldwide excluding professional business carried out from an office in the United States of America or Canada and excludes any action for a claim brought in any court in the United States of Amercia or Canada.

We are registered to carry on audit work in the UK by the Institute of Chartered Accountants in England and Wales and details about our audit registration can be viewed at www.auditregister.org.uk, under reference number C008875364.