The Consumer Prices Index (CPI) rose by 3.1% in the 12 months to August 2026, up from 2.9% the previous month.

The largest contributor to the CPI increase was transport, particularly motor fuels. With expectations of further CPI rises over the next few months, this is causing pressure for both businesses and individuals.

In a British Chambers of Commerce (BCC) survey of 5,000 firms, 66% of respondents stated inflation was their main concern and Stuart Morrison, Research Manager at the BCC has called on the Chancellor to address this at the next budget stating:

‘It’s crucial the Chancellor looks to ease business cost burdens at next month’s Budget. We’re calling for a targeted tax reduction package to ease energy and business rate pressures for all firms.’

James Smith, Chief Economist at the Resolution Foundation focused on support for families:

‘With money tight and living costs rising, the Government should resist throwing money at costly blanket support. It would get far more bang for its buck by targeting help at lower-income families feeling the squeeze most – through targeted energy discounts – if bills rise sharply in January as now looks increasingly likely.’

Internet links: ONS | British Chambers of Commerce | Resolution Foundation

Data released by the Office for National Statistics (ONS) on 22 September 2026 showed the UK borrowed £18.3 billion in August 2026, up £2.9 billion on the same month last year.

Increased debt levels were partly attributed to the impacts of inflation causing a greater increase in spending than receipts received from taxes and elsewhere. Overall borrowing in the financial year to August 2026 was £77.3 billion, £2.2 billion less than the same period last year but £8.1 billion above the OBR forecast in March.

Nick Redpath, Research Economist at the Institute of Fiscal Studies warned against reading too much into any one set of monthly figures due to revisions being commonly made but stated:

‘Both higher borrowing costs and higher inflation make life harder for a Chancellor who is looking to bring down borrowing and to spend more on government priorities.’

Internet link: ONS

In rules brought in under the Economic Crime and Corporate Transparency Act 2023, directors are required to verify their identity with Companies House or risk enforcement action and penalties.

Since 18 November 2025, newly appointed directors must verify their identity before acting as a director. Existing directors are required to verify during a 12-month transition period, when filing the company’s next confirmation statement. The aim is to ensure that directors controlling businesses can be identified and held accountable in efforts to address the misuse of UK companies for criminal purposes.

Three directors were fined at City of London Magistrates’ Court on Wednesday 16 September; two for continuing to act as directors despite not completing identity verification and one for ‘failing to take reasonable steps’ to prevent someone acting as director while unverified. The three directors were also prosecuted for failing to file confirmation statements within the statutory period.

Martin Swain, Director of Intelligence and Law Enforcement Engagement at Companies House, said:

‘These cases send a clear message that identity verification is not optional. The vast majority of directors and people with significant control will comply with the new requirements, but where individuals fail to meet their legal obligations, Companies House will take appropriate enforcement action.’

Internet link: The Insolvency Service and Companies House