British small and medium-sized enterprises are facing a fresh squeeze on margins after official figures revealed inflation jumped to 3.3 per cent in March, the first hard evidence of how the Middle East conflict is feeding through to the real economy.

Data released by the Office for National Statistics on Wednesday showed the Consumer Prices Index accelerated from 3 per cent in February, in line with City forecasts and marking the first uptick in the headline rate since December. It is also the first inflation reading to capture the surge in global oil and gas prices since hostilities erupted two months ago, with Brent crude up roughly 30 per cent and trading around the $100-a-barrel mark for several weeks.

The pain at the pump was unmistakable. Petrol rose by 8.6 pence per litre to an average of 140.2p, its highest since August 2024, while diesel, the lifeblood of the haulage and trades sector, leapt by 17.6p to 158.7p, a level not seen since November 2023. For the nation’s 5.5 million SMEs, many of whom rely on vans, lorries and company cars to service customers, it amounts to a significant and largely unhedgeable operating cost.

Air fares added further heat, climbing 10 per cent month-on-month against a 0.3 per cent fall over the same period a year earlier. That is the steepest February-to-March rise since 2016, although the ONS noted that prices were collected before the outbreak of war and were inflated by the timing of long-haul flights immediately after Easter.

Grant Fitzner, chief economist at the ONS, said: “Inflation climbed in March, largely due to increased fuel prices, which saw their largest increase for over three years. Airfares were another upward driver this month, alongside rising food prices. The only significant offset came from clothing costs, where prices rose by less than this time last year.”

Economists at the International Monetary Fund and elsewhere have warned that the headline rate could climb through the summer and potentially peak above 5 per cent, more than double the Bank of England’s 2 per cent target. Core inflation, which strips out volatile food and energy components, edged down to 3.1 per cent from 3.2 per cent, but services inflation, the measure most closely watched by Threadneedle Street, ticked up to 4.5 per cent from 4.3 per cent. Food prices were 3.7 per cent higher year-on-year, a number that will ripple through hospitality margins.

The Bank of England’s monetary policy committee is expected to leave Bank Rate on hold at 3.75 per cent when it meets next Thursday, though rate-setters are facing an uncomfortable dilemma. Martin Beck, chief economist at WPI Strategy, said: “With inflation likely to remain above target for longer, the Bank of England is unlikely to cut rates any time soon. But equally, the case for further tightening remains weak. A prolonged period of policy on hold looks the most likely outcome, leaving the economy exposed to the trajectory of the conflict and its impact on energy markets.”

Peter Dixon, senior economist at the National Institute of Economic and Social Research, went further, arguing that the Bank “cannot risk appearing complacent, and we therefore expect one precautionary [quarter point] rate increase over the coming months”. A move of that kind would raise the cost of variable-rate borrowing for millions of homeowners and small business owners, and set back those attempting to step onto the property ladder.

There are, however, glimmers of resilience. GDP grew by a stronger-than-expected 0.5 per cent in February and unemployment fell unexpectedly to 4.9 per cent in the three months to February, down from 5.2 per cent, suggesting that, for now at least, the labour market is holding up despite the external shock.

Rachel Reeves, the chancellor, struck a sympathetic note: “This is not our war, but it is pushing up bills for families and businesses. That’s why it’s my number one priority to keep costs down.” The Treasury has so far extended support to a limited number of rural households dependent on heating oil and has widened an existing scheme aimed at cutting energy bills for businesses, though SME lobby groups are already pressing for more targeted relief for firms whose fuel and logistics costs cannot easily be passed on to customers.

For British SMEs, the immediate message from March’s data is stark: energy-driven cost inflation is back, interest rate relief is further away than many had hoped, and the next phase of the Middle East conflict will do as much to shape the outlook for cash flow and investment as anything decided in Westminster.

Amy Ingham

Amy is a newly qualified journalist specialising in business journalism at Business Matters with responsibility for news content for what is now the UK’s largest print and online source of current business news.

Ahead of the May 2025 local elections in Swindon, the five main parties have set out their plans

The five main parties fielding candidates in Swindon’s May local elections have set out, in 200 words, their plans for tackling the borough’s roads, traffic and transport challenges.

The responses are presented below in alphabetical order.

The Conservative Party

“Swindon’s roads are not good enough. You shouldn’t have to dodge potholes on your way to work or the school run. While others offer empty promises, we choose efficiency.

“The government has provided more money; this is positive, but it is being wasted on poor-quality repairs. We all see it, a pothole is reported, it can be weeks until it’s first patched, then within months it fails, and another repair is needed.

“Our manifesto is simple. Action over excuses. We are committed to a “Repair First” approach.

“This means replacing the reactive, sluggish bureaucracy with a data-driven, rapid-response model. We will deploy local teams to fix critical damage within 48 hours, not weeks. Every repair will be tracked, ensuring your council tax translates into tangible, permanent improvements.

“We will prioritise the busiest main routes to keep Swindon moving, while ensuring residential streets receive the long-term resurfacing they have been denied for too long, fine utility companies if roadworks are not finished on time and we will clean road drains to protect homes and businesses from flooding – something no-one is talking about.

“The Conservatives are running a positive campaign setting out what we will do – specific and tangible.”

The Green Party

The Green Party has not responded to the Local Democracy request, but it has supplied its manifesto which includes:

“Owning a car is becoming increasingly expensive, and in some wards of Swindon, 40 per cent of households do not have access to a private vehicle. Cars are important, but there are real alternatives for those that can’t access them, or who want to make a change.

“We aim to deliver the cycling and walking infrastructure and the street-side electric car charging points that SBC already has the money for.

“We want to connect overlooked communities with improved bus links to the surrounding areas of Swindon and the long overdue cycle links, like the missing link from Highworth to Swindon.

“And we want to work smarter, by enhancing existing infrastructure, such as bus and cycle lanes, make legal routes for electric scooters and use existing enforcement powers to keep pavements clear.

“Ultimately, we’d like a bus service owned by the council; run for your benefit, not private profit

“Until then, we will work with the bus companies to make bus travel cleaner, easier, and more reliable by creating new routes and protecting the routes that people rely on.

“This year, we persuaded the council to agree to look at how we could make bus travel free for young people. We will stand by that commitment.”

The Labour Party

“Keeping Swindon moving and accessible is a Labour priority, because residents and local businesses rely on safe roads and fair parking every day. After years of underinvestment, the council is taking practical action to deliver visible improvements. With nearly £6m committed to highways in 2025/26, work is focused on what matters most to people: smoother journeys, safer streets, and quicker repairs when problems arise.

“Over the past year, thousands of potholes have been fixed and key routes across the borough have been resurfaced or patched, improving reliability for drivers, cyclists and pedestrians alike.

“By using more durable methods like thermal patching and repairing full streets, such as County Road and Westcott Place, repairs are lasting longer, reducing disruption and saving money over time. Crucially, a longer-term plan has been developed to tackle the wider backlog, so improvements continue year after year rather than being short-term fixes.

“Parking is also being reshaped to better support everyday needs. Proposed changes aim to make costs cheaper for those staying longer, helping workers, and boost local shops by encouraging more visitors into town centres. By focusing on practical delivery and real outcomes, these steps are designed to make a noticeable difference to daily life travelling across all parts of Swindon.”

Liberal Democrats

“Improving public transport is vital to any town the size of Swindon and important to the rural towns and villages surrounding it.

“If we increase bus usage, we will reduce the number of cars on the roads and reduce pollution. A better bus service also ensures that youngsters can get to school or college without the need for a lift in a car, and for those who don’t or can’t drive to access vital services such as the hospital and shops.

“Lib Dems understand the importance of being effective on fixing potholes, the Lib Dem-run Wiltshire Council has been rated green in the Department of Transport’s new traffic-light ratings.

“We will hold the council to account for every penny and ensure no areas is left at the back of the queue.

“We are worried about the wastage of resources as exemplified by the Southern Connector Road, which still has not been resolved. We will seek to understand what has led to this debacle and what should be put in place to prevent any future occurrences.

“Council tax should deliver results you can see and roads you can drive on. It’s time to stop patching over the problem and fix our roads properly first time”

Reform UK

“Reform UK will review and improve the reporting and repair of potholes, including evaluating commercially available equipment and services, comparing outsourcing with in-house provision, and improving communication with the public.

“Each simple pothole repair currently costs around £48; our proposal would reduce this to £29.28 while delivering longer-lasting fixes.

“This approach mirrors the success of Reform UK-run Derbyshire Council, which eliminated its pothole backlog and achieved a 75 per cent reduction in related complaints.

“We will review the effectiveness of all bus lanes to improve traffic flow, including the removal or relocation of bus lanes and bus gates where feasible. Prime examples are the Outlet Village and Park & Ride bus lanes on Cricklade Road.

“The current parking plan will be scrutinised to ensure better value from this significant income stream. This includes competitive tendering of outsourced services, improved controls over street parking, and proper consultation with small businesses to create a payment system that works for the town and its car parks.

“We do not support blanket 20 mph speed limits.

“Our long-term transport vision will support future growth, including securing Mayoral Strategic Authority funding for the A419 and A420, and investing in improved rail and bus links with Oxford and Reading.”

Five candidates from the Trade Union and Socialist Coalition are also contesting the 7 May local elections.

AUCKLAND, New Zealand — Air New Zealand announced Wednesday that Chief Financial Officer Richard Thomson has resigned and will depart the national carrier on Aug. 28, prompting the airline to immediately begin searching for his successor amid ongoing operational and financial challenges.

Thomson, who rejoined Air New Zealand in March 2021 as CFO, previously held senior commercial and finance roles within the company. During his more than five years in the top finance position, he played a key role in the airline’s post-COVID recapitalization, fleet modernization efforts and navigation of volatile fuel prices and global disruptions, according to company statements.

The resignation comes at a turbulent time for Air New Zealand, New Zealand’s flag carrier, which has faced mounting pressures including rising jet fuel costs exacerbated by Middle East tensions, a reported multi-million-dollar first-half loss and the need for recent fare hikes and flight consolidations in May and June. Shares of the airline fell more than 2 percent in early trading following the announcement.

In a statement to the New Zealand Exchange, Air New Zealand said it has commenced a formal search for a new chief financial officer and will provide further updates once the process is complete. The airline emphasized that Thomson’s departure is not linked to any performance issues and expressed gratitude for his contributions.

“Richard has made a significant contribution during a challenging period for the aviation industry,” the company noted. “We thank him for his leadership in finance, investor relations and corporate strategy and wish him well in his future endeavors.”

Thomson’s exit marks the latest change in Air New Zealand’s executive ranks. The airline has undergone several leadership adjustments in recent months, including shifts in operations roles earlier in 2026. Chief Executive Officer Nikhil Ravishankar, who took the helm in late 2025, now faces the task of stabilizing the finance function while steering the carrier through economic headwinds.

Aviation analysts described the timing as noteworthy but not entirely surprising given the demanding nature of the CFO role in a capital-intensive industry like airlines. Thomson oversaw critical financial maneuvers during the pandemic recovery, including equity raises and debt management that helped keep the airline afloat when international borders were closed and domestic travel was severely restricted.

Since resuming full operations, Air New Zealand has battled persistent cost pressures. Jet fuel remains a major expense, and disruptions from geopolitical events — particularly strains around the Strait of Hormuz — have driven up prices and forced route adjustments. The carrier recently warned of higher fares and reduced capacity on certain domestic and trans-Tasman routes to offset these costs.

Industry observers point out that airlines globally are grappling with similar issues. Fuel hedging strategies, fleet efficiency and revenue management have become even more critical as passenger demand rebounds unevenly and competition intensifies from low-cost carriers and international rivals.

Air New Zealand’s financial performance has shown signs of strain. The company reported a first-half loss in recent updates, citing elevated fuel prices and softer demand in some segments. Despite this, the airline has maintained its commitment to sustainability goals, including investment in more fuel-efficient aircraft and exploration of sustainable aviation fuels.

Thomson’s background includes a Bachelor of Commerce and Bachelor of Law from the University of Canterbury. His deep institutional knowledge of Air New Zealand, spanning multiple stints, made him a steady hand during crises. His departure will leave a gap in corporate memory at a time when the board and CEO are focused on long-term strategic planning.

The search for a new CFO is expected to attract strong interest from both domestic and international candidates with experience in aviation, transportation or capital-intensive sectors. Key qualifications will likely include expertise in financial planning, risk management, investor communications and navigating regulatory environments in New Zealand and key markets like Australia, the Pacific Islands and Asia.

Air New Zealand operates a fleet serving domestic routes, trans-Tasman flights to Australia, and long-haul services to Asia, the United States and Pacific destinations. The CFO plays a pivotal role in capital allocation decisions, including aircraft purchases or leases, which can run into hundreds of millions of dollars.

Market reaction was muted but negative initially, with shares trading down around 2.2 percent on the NZX. Broader New Zealand shares remained relatively flat, reflecting limited immediate contagion from the news. Analysts suggested investors are more focused on quarterly operational updates and the broader economic outlook for tourism-dependent New Zealand.

The resignation highlights the high turnover sometimes seen in senior airline executive roles due to the cyclical and volatile nature of the business. Previous CFO changes at Air New Zealand and peer carriers have often coincided with strategic shifts or recovery phases.

As the airline moves forward, leadership stability will be crucial. Ravishankar has emphasized building resilience through cost control, network optimization and customer experience improvements. The incoming CFO will need to align closely with these priorities while managing shareholder expectations and potential future capital needs.

Air New Zealand has positioned itself as a leader in sustainable aviation in the region, with ambitions to reduce emissions and support New Zealand’s climate goals. Financial oversight of these initiatives, including potential investments in new technology, will fall to the next finance chief.

Thomson is expected to remain in the role until late August, providing continuity during the transition. The company said it will ensure a smooth handover and that day-to-day operations remain unaffected.

The announcement arrives as the global aviation industry continues its post-pandemic normalization. Passenger numbers have recovered strongly in many markets, but profitability remains elusive for many carriers due to supply chain issues, labor shortages and geopolitical risks.

For Air New Zealand specifically, domestic and short-haul routes have shown resilience, while long-haul international services face stiffer competition and higher fuel exposure. Tourism from key source markets like Australia, China and the United States remains vital to the carrier’s revenue.

Industry experts expect the CFO search to conclude within several months. In the interim, the existing finance team will continue executing current strategies under CEO direction.

The development underscores the challenges facing national carriers in smaller markets. Air New Zealand plays a critical role in connecting New Zealand to the world, supporting trade, tourism and family ties across the Pacific. Maintaining financial health is essential not only for shareholders but for the broader economy.

As the search begins, speculation may arise about whether the new CFO will come from within the aviation sector or bring fresh perspectives from other industries. Past appointments at similar airlines have mixed internal promotions with external hires to balance continuity and innovation.

Air New Zealand’s board has not commented further on the reasons behind Thomson’s decision, describing it as a personal career move. Such transitions are common in corporate life and do not necessarily signal deeper issues.

Looking ahead, the airline’s next earnings report and any strategic updates will be closely watched. Investors will seek reassurance that the leadership change will not disrupt ongoing efforts to improve profitability and competitiveness.

For now, Air New Zealand continues its daily operations with more than 100 aircraft serving dozens of destinations. The focus remains on delivering reliable service while addressing cost pressures and positioning for sustainable growth.

Thomson’s tenure spanned a period of profound change for the airline, from pandemic-induced grounding of fleets to gradual rebuilding of international networks. His contributions to financial stability during that era were significant, even as external factors continued to test the business model.

The story of Air New Zealand’s CFO transition adds to a broader narrative of executive movements in the aviation sector as companies adapt to a new normal. Whether this change signals a strategic pivot or simply a natural evolution remains to be seen as the search for a successor unfolds.