UK inflation has surged to 3.6% in the year to June a sharp rise from May and well above the Bank of England’s 2% target, outpacing expectations.
This inflationary jump is set to tighten budgets and further pressure businesses already grappling with rising operational costs.
Chancellor Rachel Reeves delivered the most sweeping financial services reforms since 2008 at Mansion House, vowing to scale back risk-averse regulations that ‘have gone too far’. Reeves pledged to inject more confidence into UK markets, positioning Britain as a global investment destination once more.
Michael Kill, CEO of the Night Time Industries Association, commented: “Today’s spike in inflation is extremely troubling for businesses across the hospitality and night-time economy. While the Mansion House reforms may create a more agile financial environment, we must ensure that such high-level policy changes are felt by the grassroots businesses that form the backbone of our sector.
“After years of disruption and instability, our industry is preparing to step up its calls for targeted support to relieve mounting tax and cost burdens. Without meaningful action on tax, energy prices, National Insurance, and business rates, many nightlife venues, bars, and late-night operators, already strained by soaring costs, labour shortages, and reduced consumer spending, risk being pushed beyond breaking point.”
Kill, concluded: “We urge the government to approach the upcoming Budget with a mindset of long-term investment, not short-term cuts, particularly for sectors like ours that play a vital role in economic and cultural life.”
