Business leaders are urging the government to promote a period
of stability which they say is crucial for business success, as
December consumer prices index inflation figures show an increase
to 2.9%.
Paul Bassi, President of Birmingham Chamber of Commerce (BCI),
said: "This is the biggest ever rise in the annual rate of CPI in a
single month. There are fears that the January rate is going to be
even higher. VAT has reverted to 17.5% and road fuel prices are
over £5 per litre.
"It is clear that the economy remains weak and businesses
continue to face serious problems. We are still not officially out
of recession and some economists are predicting another serious
dip. It is vital that the government prepares a stable environment
for businesses to grow."