The British Chambers of Commerce is urging the Prime Minister and Chancellor of the Exchequer proposing a comprehensive five-point plan to provide vital support to UK businesses.
The plan includes :
- Ofgem to be Giving more power to Ofgemto strengthen regulation of the energy market for businesses
- Temporarily cut VAT to 5% to reduce energy costs for businesses
- Introducing Covid-style support through Government Emergency Energy Grant for SMEs
- Temporarily reversing NICs and put money back into the pockets of businesses and workers
- Reviewing and reforming the Shortage Occupation List to help bring down wage pressures and fill staffing vacancies.
The cost-of-living crisis and the cost-of-doing business crisis are two sides of the same coin, says the BCC. The Bank of England’s projections of a recession and consumer confidence are clear signs that the Government is running out of time to offer businesses and households necessary support.
Director General of the BCC Shevaun Haviland, said: “Since the start of 2021 we have been repeatedly hearing the same message: the cost-of-doing-business is increasing.
“At over 10%, CPI inflation is at a 40-year high; interest rates are seeing the largest increase in 27 years; and eye watering energy bills have created a perfect storm of increasing costs. The impact of these challenges on consumers, businesses and wider society cannot be overstated.
“Consumer confidence reported at a 50-year low, and the Bank of England’s projections of a year-long recession, demonstrates that the cost-of-living crisis and the cost-of-doing-business crisis are two sides of the same coin.
“The BCC’s five-point plan is not solely about ensuring support for businesses. It is also about protecting jobs, securing livelihoods, and creating a vibrant and prosperous society for everyone.
“Good business is good for our communities, and we must support firms and the individuals that run them to ride out this economic storm.
“In June, we gave the Government until the Autumn budget to get its house in order, but the latest economic projections released since then have been worse than expected. We simply cannot afford to see another month of the same old news.
“Through feedback from accredited Chambers of Commerce around the UK, alongside our extensive research and survey work, we know what businesses require now to survive and plan for growth. The regulation of the energy sector for businesses must be strengthened. Businesses also need to receive support for spiralling costs through grant funding and a reduction in VAT on energy bills, along with measures to boost growth such as a temporary reversal of NICs and an urgent reform of the SOL to fill staff vacancies.
“The problems are well understood. We at the BCC are offering solutions. It is now over to the Government to take action to protect businesses, livelihoods and jobs.”
