NEWS that the UK inflation fell sharply to 4.6 per pent in October is encouraging.

by Emma Rawlings, Chief Executive, Somerset Chamber of Commerce.

It is the lowest level for two years, down from 6.7 per cent the previous month.

This is largely due to lower energy prices after the energy price cap, which limits what suppliers can charge consumers per unit of energy, was lowered.

The Bank of England has also consistently raised interest rates to try and slow price rises.

But despite the good news, for many, the reality is that prices are still worryingly high. That is dampening spending and hitting the businesses we represent.

However, the data shows prices in the production sector continue to fall. This confirms what companies are telling us – for the past five quarters, there has been a fall in the number of firms expecting their prices to rise.

But finances are still tight. Firms are struggling to invest, as they face the challenges of high interest rates, skills shortages and difficult trading conditions.

And investment is key to business growth and a healthy, vibrant economy.

We are waiting to hear the Government’s Autumn Statement. It is an opportunity for the Government to outline a clear strategy for growth.

The Chamber network has called for action from the Chancellor on planning, the energy grid, full expensing, business rates and occupational health.

Movement on these crucial issues can provide a springboard for business investment which will be the cornerstone of economic growth.

It would also send a strong signal that Britain is open for business, drawing-in much-needed investment for communities up and down the country, enabling them to thrive.

Business investment is the lifeblood of our local economies, creating jobs and supporting our public services.

The potential to unlock opportunities across the UK is enormous and now is the time for the Government to act.