“While inflation is down considerably from this time last year, the larger than expected uptick in October highlights the continuing price pressures in the economy. Electricity and gas costs have risen sharply, with households facing challenges as we head into winter.

“Our research shows that while concerns about inflation have been steadily declining, it remains a significant issue for many businesses. SMEs are now deeply concerned about rising costs on the horizon next year. The combined impact of national insurance and living wage rises, and the Employment Rights Bill is likely to put strong pressure on labour costs. Ongoing geopolitical conflicts and a potential tariff war will also have impacts.

“To help mitigate cost pressures, the government should look to accelerate the permanent cuts in business rates for retail, hospitality and leisure properties – currently scheduled for 2026. Much also depends on the government’s strategies on industry, infrastructure and trade. We need these plans to deliver at pace and help drive forward business growth across the UK.”