The regular ‘roundtable’ event was organised by the Federation of Small Businesses and held at Coventry and Warwickshire Growth Hub. It saw Glynn Jones, the Bank of England’s Agent for the West Midlands, discuss the issues facing businesses from a range of sectors across the area including retail, manufacturing, and IT.
Small firms in attendance heard that while inflation is anticipated to fall to around 3% in 2024 it will be above the Bank of Englands 2% target for some time. While a recession had been avoided so far there was little to suggest that growth will not remain quite sluggish for the foreseeable future.
Glynn Jones said “While the outlook remains challenging more recent news at least in terms of headline inflation has been more positive. The Bank will continue to monitor closely business conditions and meetings such as this one with FSB to continue to provide valuable intelligence which helps guide MPC thinking about the current and near term outlook’
Glynn heard that small businesses are still facing multiple challenges with cost pressures and increasing operating costs including insurance, wages, fuel and energy all still concerns. Many small firms also highlighted a lack of skilled staff as a stumbling block to growth.
Lee Osborne, FSB Coventry and Warwickshire Development Manager said “This was a welcome opportunity for FSB members to engage directly with the Bank of England and provide a small business perspective on the current challenges being faced. While some businesses and sectors round the table were more optimistic, hospitality, retail and leisure businesses were still facing challenges in a subdued economy.
Small businesses have been relieved to see a pause in base rate hikes, but we must keep emphasising that the Bank of England should exercise caution and be mindful of the effects and current pressures.
We are grateful to Glynn for taking the time to speak to us, listen to feedback and gather evidence from the local business community to help shape future Bank of England policy work ”