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Join a growing community of business owners. Get the latest business guidance and economic news via WhatsApp, email, or RSS.
18 February 2026
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6 min
In the video, Liz Barclay, Britain's former Small Business Commissioner, discusses the recent drop in inflation to 3% from 3.4%. While this is good news for households, Barclay emphasizes the challenges still faced by small businesses. She explains that businesses are dealing with wage increases, rent increases, and business rates increases, with some reporting significant hikes in costs such as employer's liability insurance. She suggests that if businesses can absorb these costs without raising their prices, it could help keep inflation down. However, if they have to raise prices, inflation could rise again. Barclay also comments on Chancellor Rachel Reeves' claim that her decisions in the autumn budget led to the inflation drop. She suggests that while economists have been predicting a drop in inflation, the role of the autumn budget in this change is not clear-cut. She also mentions the possibility of an interest rate cut, which could potentially reduce borrowing costs for businesses. The key takeaway for UK small business owners is the need to carefully manage costs and pricing strategies in the face of ongoing economic uncertainty.
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