Commenting on the rise in inflation to 1.2% in November, Scottish Chambers of Commerce (SCC) have warned that higher prices will increase business costs and dampen demand, resulting in an urgent need to tackle high business rates bills. Liz Cameron, Chief Executive of SCC, said:
“Inflation is again on the rise and this is likely to continue in 2017, with both the Bank of England and Office of Budget Responsibility projecting that it is likely to hit 2.7% during the next year, exceeding the government’s 2% target.
“The problem for businesses is that this will contribute to rising costs at the same time as the rising cost of living will put pressures on consumer demand. That is why Government at all levels must now urgently look at what can be done to tackle the cost of doing business. Here in Scotland, one of the major costs faced by many businesses is business rates and the Scottish Government has a golden opportunity in its Budget this week to tackle rising rates costs and provide a boost to business just when it is most needed.”