“The inflation warning lights continue to flash, with July’s rate being slightly higher than most analysts had forecast. Prices are now rising at the fastest rate since the start of 2024, with little sign that inflation will be near the Bank’s target of 2% anytime soon.

“Our surveys show inflation remains a real concern for over half of SMEs. Businesses tell us national insurance, wage growth and tariffs are all bubbling away in a cauldron of price pressures. While many firms are desperate to see further interest rate cuts, there’s now growing concern that persistent inflation will limit the scope for further reductions.

“It’s vital that policymakers ease the cost pressures on business. Our message to the Chancellor is clear – no new tax rises on business in the Budget. Firms can’t drive forward economic growth if they are continuing to face cost pressures from several directions.”