Northern businesses have been hit harder by cost hikes than firms in London and the South East, research reveals today.
Analysis by Labour found 53.6% of companies in Yorkshire and the Humber, 52.1% of firms in the North East and 47.8% in the North West said prices of materials, goods and services had risen “more than normal” between February and March.
In contrast, just 36.7% of firms in the capital and 46.6% in the South East reported above-normal cost surges.
The Office for National Statistics figures studied by Labour reveal the struggles faced by firms in different regions - and threaten to pile pressure on companies based in the Red Wall of former Labour strongholds.
Firms hit by cost increases are beginning to pass them on to customers.
Nearly a quarter of businesses in the North admitted they had been forced to lift prices for consumers, compared with one in seven in London.
Shadow Business Secretary Jonathan Reynolds said: “As household incomes have fallen to a record low, higher costs for firms mean higher prices for customers.
“It’s simply not right that companies in parts of the country that should be booming are being held back by a government that isn’t on their side, with their customers ultimately paying the price.”
A Government spokesman said: “No government can control the global factors pushing up the cost of everyday essentials, but we will act wherever we can to mitigate rising costs.
“Just last week we announced cuts to fuel duty – the largest cut across all fuel duty rates ever – and a tax cut worth up to £1,000 for around half a million small businesses.
“We have backed businesses throughout the past few years with an unprecedented package of support including VAT cuts, business rates holidays and government-backed loans worth around £400billion, and we will continue to stand firmly behind them.”
