So the country is facing yet another squeeze on its finances because of the recent food shortage. Sounds ridiculous but that is the harsh reality, based on the fact that the ONS figures showed fresh produce prices had risen sharply following recent shortages caused by bad weather in Spain & Morocco and, closer to home, producers cutting back on heating greenhouses due to the cost of fuel.
These food supplies and prices have now normalised so why on earth is the MPC inflicting more pain on us?
Andrew Bailey has warned companies not to hike their prices as this will fuel further inflation and lead to further rate rises (at least he has finally realised that!) but what does he expect businesses to do? Presumably he wants them to absorb the costs which will erode margins even further and lead to increasing numbers of business failures and subsequent rising unemployment.
The Bank have said that inflation is still expected to fall rapidly over the rest of this year but Andrew has also said that rates may need to rise further. So he continues to contradict himself and expects businesses to wear the pain for the MPC failures.
Andrew has been doing the rounds with the news outlets saying that he is more optimistic about the economy but we do not believe he has been out in the real world as we really cannot share that view. UK Plc simply cannot continue to wear the pain of eroding margins and so we remain concerned for the future of our entrepreneurial economy.
If you are involved with, or know of any business or individuals that are struggling financially we suggest that you talk to us.
The directors of SKSi look at a formal insolvency process as the last resort – not the first. It is their long held belief – borne out with proven experience – that seeking advice at the first sign of financial pressures will lead to a more favourable outcome. Conversely, doing nothing and hoping the problem will go away is far more likely to lead to a call from the bank and an insolvency process.
We are always available for an initial zero cost assessment which can be arranged by contacting Alistair Dickson.