London Daily

Focus on the big picture.
Friday, Jun 20, 2025

Firms hit back at Bank governor in prices row

Firms hit back at Bank governor in prices row

Business leaders have hit back after the Bank of England governor said they should think twice before raising prices to cope with inflation.

Andrew Bailey said increased prices could drive up the cost of living even further and hurt the poorest most.

But the boss of pub chain JD Wetherspoon, Tim Martin, said bank managers were "breathing down the neck" of business owners.

UK Hospitality said Mr Bailey ignored the "stark situation" faced by many.

"If all prices try to beat inflation we will get higher inflation," the bank governor told the BBC's Today programme.

Speaking a day after the Bank raised interest rates to their highest level for 14 years, Mr Bailey said higher inflation "hurts people" and he warned rates would go up again if prices continued to rise.

"I would say to people who are setting prices - please understand, if we get inflation embedded, interest rates will have to go up further and higher inflation really benefits nobody," he added.


'An unnerving experience'


But Mr Martin said while businesses may "want to follow his advice, many won't be able to" and warned there could be price rises at the pub chain.

"If cash costs for energy, labour and supplies rise and prices don't go up, bank managers around the country will be breathing down the neck of business owners - which is an unnerving experience," he said.

The Wetherspoons chairman said he was looking forward to a time when "ferocious" inflationary pressures eased across the industry.

The low-cost food and drink chain, which has a network of 843 pubs across the UK and Ireland, reported a 5% rise in sales over the six months to 29 January compared with the same period in 2019.

Its figures mirror those from the British Retail Consortium (BRC) which showed retail sales had grown to 6.3%, their highest level since March 2022.

However, it said rising inflation meant sales volumes remained firmly in the red.

The BRC said despite the ongoing cost of living squeeze, customers were still ready to spend on what they needed, with higher sales in clothing and cosmetics.

"There remain challenges to consumer spending in the coming months with the end of the Energy Bill Support Scheme in April and the increasing cost of borrowing.

"It is essential that government avoids any additional regulatory burdens on business that would risk pushing prices up, adding to the squeeze on consumer wallets," it said.


'Minor miracle'


Trade body UK Hospitality's chief executive Kate Nicholls said it was a "minor miracle" so many businesses had held off raising prices for as long as they had.

"To suggest the sector should stomach these staggering cost increases ignores the real and stark situation facing venues across the country," she said.

A government spokesperson said it had provided an "unprecedented" energy support package for firms, "and further support from April onwards".


Newsletter

Related Articles

0:00
0:00
Close
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
Senate hearing on who was 'really running' Biden White House kicks off
Iranian Military Officers Reportedly Seek Contact with Reza Pahlavi, Signal Intent to Defect
FBI and Senate Investigate Allegations of Chinese Plot to Influence the 2020 Election in Biden’s Favor Using Fake U.S. Driver’s Licenses
Vietnam Emerges as Luxury Yacht Destination for Ultra‑Rich
Plans to Sell Dutch Embassy in Bangkok Face Local Opposition
China's Iranian Oil Imports Face Disruption Amid Escalating Middle East Tensions
Trump's $5 Million 'Trump Card' Visa Program Draws Nearly 70,000 Applicants
DGCA Finds No Major Safety Concerns in Air India's Boeing 787 Fleet
Airlines Reroute Flights Amid Expanding Middle East Conflict Zones
Elon Musk's xAI Seeks $9.3 Billion in Funding Amid AI Expansion
Trump Demands Iran's Unconditional Surrender Amid Escalating Conflict
Israeli Airstrike Targets Iranian State TV in Central Tehran
President Trump is leaving the G7 summit early and has ordered the National Security Council to the Situation Room
Taiwan Imposes Export Ban on Chips to Huawei and SMIC
Israel has just announced plans to strike Tehran again, and in response, Trump has urged people to evacuate
Netanyahu Signals Potential Regime Change in Iran
Juncker Criticizes EU Inaction on Trump Tariffs
EU Proposes Ban on New Russian Gas Contracts
Analysts Warn Iran May Resort to Unconventional Warfare
Iranian Regime Faces Existential Threat Amid Conflict
Energy Infrastructure Becomes War Zone in Middle East
UK Home Secretary Apologizes Over Child Grooming Failures
Trump Organization Launches 5G Mobile Network and Golden Handset
Towcester Hosts 2025 English Greyhound Derby Amid Industry Scrutiny
Gary Oldman and David Beckham Knighted in King's Birthday Honours
Over 30,000 Lightning Strikes Recorded Across UK During Overnight Storms
Princess of Wales Returns to Public Duties at Trooping the Colour
Red Arrows Use Sustainable Fuel in Historic Trooping the Colour Flypast
Former Welsh First Minister Addresses Unionist Concerns Over Irish Language
Iran Signals Openness to Nuclear Negotiations Amid Ongoing Regional Tensions
France Bars Israeli Arms Companies from Paris Defense Expo
King Charles Leads Tribute to Air India Crash Victims at Trooping the Colour
Jack Pitchford Embarks on 200-Mile Walk to Support Stem Cell Charity
Surrey Hikers Take on Challenge of Climbing 11 Peaks in a Single Day
UK Deploys RAF Jets to Middle East Amid Israel-Iran Tensions
Two Skydivers Die in 'Tragic Accident' at Devon Airfield
Sainsbury's and Morrisons Accused of Displaying Prohibited Tobacco Ads
UK Launches National Inquiry into Grooming Gangs
Families Seek Closure After Air India Crash
Gold Emerges as Global Safe Haven Amid Uncertainty
Trump Reports $57 Million Earnings from Crypto Venture
Trump's Military Parade Sparks Concerns Over Authoritarianism
Nationwide 'No Kings' Protests Challenge Trump's Leadership
UK Deploys Jets to Middle East Amid Rising Tensions
Trump's Anti-War Stance Tested Amid Israel-Iran Conflict
Germany Holds First Veterans Celebration Since WWII
U.S. Health Secretary Dismisses CDC Vaccine Advisory Committee
Minnesota Lawmaker Melissa Hortman and Husband Killed in Targeted Attack; Senator John Hoffman and Wife Injured
Exiled Iranian Prince Reza Pahlavi Urges Overthrow of Khamenei Regime
×