Governor's inflation calls a slap in the face

By Ed Bedington

- Last updated on GMT

Bank of England inflation call is a joke

Related tags Bank of england Inflation Government Pubs Energy costs Utilities Pub & bar Costs

The Bank of England Governor has called on businesses, including pubs, to not raise prices to avoid fuelling inflation.

At the same time he’s increased interest rates to make life even more expensive for those with a mortgage. I think that's called irony.

Is it me, or does there seem to be a total disconnect at the leadership of our country with the reality of what’s happening on the ground?

Pub and bars are clinging on by their fingernails with rocketing costs assailing them on all sides. We’re seeing the price of carrots on the wholesale market increasing by 86%, with some operators having to pay £1.20 a kilo. They’re 50p a kilo in the supermarket.

But the Governor is calling on pubs to sit on those increases, absorb them, don’t pass them on.

And yes, I’m sure that will be lovely for the consumer, but the net result of that will be the consumer has nowhere to go to take advantage of these inflation free prices because they’ll be no businesses left.

Now I know the Bank of England has no control over Governmental processes, nor does it hold any sway with the rapacious utility companies, but to not address those underlying causes, and in fact, do the opposite and add to them by  increasing interest rates, beggars belief.

Energy costs

The underlying problem that is driving the vast amount of this inflation is those rapacious energy providers. The very companies that are wantonly fleecing the hospitality sector like modern-day pirates on a pillaging expedition.

Yet the Government is about to pull the plug on the limited support it has provided so far on energy, and the recent Spring Budget offered virtually nothing to help operators stay afloat.

The one simple measure that could have helped the entire industry (and avoided some of those inflationary driving price increases) would have been to cut VAT.

But the Government would rather see the sector go to the wall than miss out on some of that unpaid tax collection.

We need some common sense injected into the leadership of this country, and they can start by offering some meaningful support and tackling the energy crisis properly. 

Without that, we’re set to see spiralling inflation running unchecked.

Related topics Rebuilding the Pub Sector

Related news