Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what recent assessment his Department has made of the potential effect of rising levels of inflation on small businesses.

Inflation has recently increased in many global economies, including the UK, pushed up by higher energy prices and global supply and demand imbalances.

We continue to monitor businesses’ ability to absorb rising costs and raise prices, which is easier at times of high demand (as is the case now).

Where cost pressures become more difficult to absorb for small businesses, there continues to be Covid-related business support available, such as guaranteed lending, tax reductions and grants.