“Inflation doesn’t just ‘happen.’ It’s being fuelled here by a Labour government that keeps punishing business. That is driving up costs for everyone,” explains Shadow Secretary of State for Business and Trade, Andrew Griffiths.
Britain’s inflation rate remained stuck at 3.8% in September, the third consecutive month without improvement, according to the Office for National Statistics (ONS).
The figures underline the Government’s struggle to bring prices under control ahead of Chancellor Rachel Reeves’ crucial Budget next month.
The Consumer Prices Index (CPI), the key measure of inflation, is still almost twice the Bank of England’s 2% target, highlighting how far the UK remains from price stability.
The ONS said inflation was held up by airfares and fuel costs, which fell last month but not as sharply as they did a year ago. Despite some easing in food and energy prices earlier in the year, overall price growth has failed to slow meaningfully, suggesting that inflationary pressures remain deeply entrenched in the economy.
The persistently high rate is likely to complicate the Bank of England’s plans to lower interest rates, keeping borrowing costs elevated for homeowners and businesses. It will also increase the cost of servicing government debt, further straining public finances as the Treasury prepares its next fiscal statement.
The Bank of England forecast in August that inflation could reach around 4% this autumn, while the International Monetary Fund (IMF) recently predicted that the UK will record the highest inflation rate among the G7 economiesthis year, averaging 3.5%.
Economists point to a combination of rising food prices, household bills, and the impact of Labour’s tax increases on businesses as key factors keeping inflation high.
What Inflation Means for Households
Inflation measures how much prices are rising across the economy. When it remains high, the purchasing power of wages erodes, forcing families to spend more for the same goods and services. Essentials such as food, fuel, and energy bills take a larger share of household budgets, leaving less for savings or discretionary spending.
For millions of Britons, this means a persistent cost of living squeeze, with pay packets failing to stretch as far as they did before. Businesses, facing higher input costs, often pass these on to consumers, perpetuating the cycle of rising prices.
Today’s latest figures show that the fight against high prices is far from over, and that both the Government and the Bank of England face a difficult path to restore stability.
If your salary or benefits were cut by about 4% tomorrow, you’d be livid. Yet that’s precisely what Rachel Reeves has done to you. Thanks to her choices, Brits are poorer today – the pound in your pocket is now worth less.
Britain doesn’t need another slogan about fairness. It needs policies that trust business, reward work and let the economy breathe again. Inflation is the cruelest tax. It always hits the poorest first.
In a series of tweets, Shadow Secretary of State for Business and Trade, Andrew Griffith explained:
“If your salary or benefits were cut by about 4% tomorrow, you’d be livid. Yet that’s precisely what Rachel Reeves has done to you. Thanks to her choices, Brits are poorer today – the pound in your pocket is now worth less.
“Labour promised stability. Instead, they’ve fuelled inflation, hiked taxes, and made life more expensive for everyone. Inflation doesn’t just “happen.” It’s being fuelled here by a Labour government that keeps punishing business. That is driving up costs for everyone. Labour hiked a £25 billion jobs tax on every employer. They made a choice to use business as a cash cow.
“If you raise the cost of employing people, sooner or later prices will only go up. It’s basic economics. Yet Rachel Reeves ignored the warnings and now she’s got an inflation problem that won’t go away. Then they doubled business rates for many. Supermarkets said it would push up prices. Labour did it anyway. Now your weekly shopping basket costs more. Like always – Labour never listen.
“Our pubs are being hammered too. One major chain said it will have to add 10p to every pint just to cover new taxes. The cost of a night out is rising by policy, not accident. And Labour’s Employment Rights Bill will make everything worse. In practice, it’s another burden. More paperwork, higher costs, less flexibility. Businesses will pay, so you pay. Then pile on higher minimum wages, packaging taxes and green levies. Every one of them adds cost. Every one of them makes business more expensive.
“Labour keeps claiming it’s “for working people.” But every extra rule, tax and levy lands hardest on those very same people. We don’t have to live like this. In the decade before COVID inflation averaged just 2%. Labour’s approach traps us in a cycle of higher prices and lower growth. Britain doesn’t need another slogan about fairness. It needs policies that trust business, reward work and let the economy breathe again. Inflation is the cruelest tax. It always hits the poorest first. Inflation isn’t inevitable. It’s a choice. And Labour keeps choosing higher taxes, higher costs, and higher prices for you.”
