Bank of England suggestion would lead to business faliure and job losses
March 23, 2023
Leading trade body UKHospitality has hit out at the suggestion from the Bank of England Governor Andrew Bailey that businesses should not raise prices above the rate of inflation, when businesses are facing energy, food and drink costs far above the current 10% inflation rate.
Hospitality businesses are already facing unprecedented cost pressures, with energy bills double what they were last year and food price input inflation of over 20%. Businesses face another catastrophic hit next week when energy support is significantly reduced, which hospitality businesses expect to cause an 82% rise in bills.
Kate Nicholls, Chief Executive of UKHospitality, said that firms had no choice but to reluctantly raise prices, in order to stay in business and save jobs.