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.”

The Eden Project Struggling with Debt Synergy Client Solutions Discovers

Cornwall’s The Eden Project is the latest business to announce that it is struggling with debts from the economic downturn. Synergy Client Solutions reports the problems that it is facing.

The managing director of the Eden Project announced yesterday that the attraction has debts of £5m and that up to 35 jobs were at risk. Gaynor Coley said “We are overall in debt about £5m – but a £5m debt on a £140m asset with a £20m turnover is a very reasonable level of debt, particularly in this climate.”

Ms Coley said that visitor numbers had been healthy but that loses last year of £1.78m had compounded this year’s debt. The cause of the loss last year was in part down to flooding in November 2010 that saw the attraction close for a week and its very profitable ice rink close for one month.

Despite her claims, Synergy Client Solutions understands that visitor numbers have fallen in 2009, 2010 and 2011, with last year seeing only just over 1m visitors through the door. Ms Coley said that they would be looking for innovative ways to ensure that the attraction was fit for purpose and was good value for money.

The Eden Project boasts the world’s largest rainforest in captivity with jungles and waterfalls. It also has fantastic year-round garden displays and an educational centre.  The Eden Project is also a famous concert venue. Lined up to perform this summer are artists Plan B, Blink-182 and Example.

Manager of Synergy Client Solutions, Ben Jeanes thinks that the problem is even more worrying than initially thought, “The Eden project is a research centre that works with communities around the world to reduce the impact of various industries on the planet including mining and businesses. If some of the individuals involved in research are at risk of losing their jobs then that will surely affect their work.”

Malcolm Bell of Visit Cornwall is more optimistic. “We will be looking to see how we can help. I am sure Eden’s team will be working hard and creatively. It took innovation to create Eden and I am sure that pool of talent will be there to see it through these troubles.” Synergy Client Solutions hopes that he is right.