Synergy Client Solutions Watches Inflation Fall to 15 Month Low

UK inflation has fallen to a 15 month low of 3.4% through February, the fall is largely attributed to lower gas and electricity bills. Synergy Client Solutions examines what this means for Britain.

The statistics released by the Office of National Statistics (ONS) today have shown that the Consumer Price Index (CPI) inflation has fallen by 0.2% since January. The rating has not been this low since November 2010. The report also suggested that huge sales and discounts among retailers have affected the inflation rate.

Synergy Client Solutions had read in the last couple of days that analysts were expecting the fall to have been slightly greater. An average taken on the forecasts of 36 economists, had predicted that inflation would fall to as low as 3.3% but high alcohol prices, as part of a government drive to curb binge-drinking, had played a factor in stopping the rate fall even further. The prices of spirits rose 2.6 percent in February, this compared to a decline of 5.8 percent in the same period last year is significant. Vegetable and soft drinks prices rose by 3.3 percent and 4.3 percent respectively.

Managing Director Benjamin Jeanes believes that whilst this is a step in the right direction he still has concerns. “Unfortunately we still see inflation higher than wage growth meaning that people are still being squeezed financially. At Synergy Client Solutions we will be interested to see what George Osborne reveals in his annual budget tomorrow where he has promised to help low-income individuals through tax changes.”

Mervyn King, the Governor of the Bank of England has predicted that inflation will slow throughout the rest of the year but some analysts believe that it will stick harder than Mr. King would like.

Mr. Jeanes concludes, “Savers are always hardest hit by inflation rises so things appear to be heading in the right direction for them. Energy bills have been rising to outrageous heights recently, leaving the hardest-up heading towards fuel poverty. We’re relieved that those are gradually falling, and will continue to do so as we head into the summer months. This will be a long road to recovery for the UK and at Synergy Client Solutions we will be evaluating Mr. Osborne’s budget carefully.”

Synergy Client Solutions Backs FSB in Hunt for Small Business Representation in Cabinet.

The Federation of Small Businesses (FSB) has called for a separate Government body, which is dedicated to protecting the interests of small businesses, to have a seat in the Cabinet. Synergy Client Solutions looks at the rationale behind the request.

In its Budget submission to the Chancellor, the FSB has suggested that an agency be created that is modeled on the Small Business Administration (SBA) in the USA. Although a number of government departments deal will small business policy there isn’t a single department that focuses specifically on the needs of small businesses and the FSB believes that this is causing them to fall down the list of government priorities.

Synergy Client Solutions, a customer acquisitions company based in Bristol, is all too aware of the problems faced by small businesses. Director of the company, Benjamin Jeanes said of the proposal, “This will be very welcome amongst small businesses throughout the UK. I think the government recognises the importance of small businesses but unfortunately because of lack of representation they don’t always stay at the forefront of policy. The reality is however that there are 4.5 million small businesses in the UK and they need to be given a more prominent seat within government.”

The FSB believes that a group modeled on the US SBA would be incredibly beneficial and would help them improve small business finance particularly credit easing and improving procurement opportunities for small firms. They also believe that it would help provide quick and effective disaster assistance for small businesses when they are hit by exceptional circumstances outside of their control, like the summer riots of 2011. The SBA in America has been in existence since 1953 and has a seat in the Cabinet.

Synergy Client Solutions is fully behind John Walker, the national chairman of the FSB who recently said, “Through implementing a Small Business Administration, it would allow the government to quickly implement policies aimed at helping small businesses.”

Mr. Jeanes believes that much more must be done to help small businesses. “The government has set a 25 per cent improvement target in helping provide procurement opportunities to small firms but they’re failing to really put the measures in place the help the businesses to do this. Perhaps the world ‘small’ is holding the businesses back. They’re definitely not small in number and if an organised lobbying committee could be put in place, we’re confident at Synergy Client Solutions that we would see an improvement.”