UK inflation is set to 'quadruple' to approximately 4 per cent in the second half of 2017, according to leading thinktank The National Institute for Economic and Social Research (NIESR).
The rise in prices will increase dramatically during 2017, as the fall in the value of the pound is passed on to consumers.
Simon Kirby, Head of Macroeconomic Modelling and Forecasting at the NIESR, warns the depreciation of sterling would “pass through into consumer prices over the coming months”.
“While we expect this to be only a temporary phenomenon, it will nonetheless weigh on the purchasing power of consumers over the next couple of years,” he said.
With UK inflation cutting disposable income, the weaker pound and a business landscape fraught with uncertainty, it is understandable that business owners are weary of taking risks. However, due to the size and nature of their businesses, SMEs have the advantage of being able to be flexible and quick to respond to changing market conditions. The key is to partner with the right specialist adviser who will guide you on your strategy and assist in making those all-important business decisions that will have the greatest impact on future success.
At Beavis Morgan, we know that running your own business can be very rewarding, provided the right structures are in place. We are well versed in working with SMEs and owner-managed businesses of different sizes across a range of industry sectors, so you can rely on our detailed understanding of the specific kinds of issues that can arise, and you can count on our expertise and ability to provide the right solutions.
For more information about how we can help you and your business, contact Steve Govey or your usual Beavis Morgan Partner.