BCC proposes 5-point plan for supporting UK businesses to PM


The British Chambers of Commerce (BCC) has written to the Prime Minister, chancellor of the exchequer, and both leadership candidates for the Conservative party proposing a comprehensive five-point plan to provide vital support to UK businesses.

The BCC five-point plan to support businesses includes the following measures. Ofgem is to be given more power to strengthen regulation of the energy market for businesses. There will be a temporary cut in VAT to 5 per cent to reduce energy costs for businesses. COVID-style support must be given by introducing Government Emergency Energy Grant for SMEs (small and medium-sized enterprises). NICs should be temporarily reversed, and money should be put back into the pockets of businesses and workers. The government must immediately review and reform the Shortage Occupation List (SOL) to help bring down wage pressures and fill staffing vacancies.

The BCC has written to the Prime Minister, Chancellor of the Exchequer, and both leadership candidates for the Conservative party proposing a comprehensive five-point plan to provide support to UK businesses. BCC research has shown unprecedented inflationary pressures on businesses, with two thirds of firms in Q2 2022 expecting further price rises.

The cost-of-living crisis and the cost-of-doing business crisis are two sides of the same coin. The Bank of England’s projections of a recession and consumer confidence reported by GfK at a 50-year low are clear signs that the government is running out of time to offer businesses and households the support they need, according to a press release by the BCC.

These projections are not a surprise to the BCC or the business community. Over the last 18 months, BCC research has shown unprecedented inflationary pressures on businesses, with two thirds of firms in Q2 2022 expecting further price rises. Energy bills, raw materials, and labour costs are all cited as the top drivers of price rises.

BCC research is also showing a reduction in the percentage of firms expecting to grow in the next twelve months, from 63 per cent in Q1 to 54 per cent in Q2. In January, BCC found that 23 per cent of businesses surveyed were looking to scale down or even consider closure in response to rising costs, added the release.

“At over 10 per cent, 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,” said Shevaun Haviland, director general of the BCC.

“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,” Haviland added.

Fibre2Fashion News Desk (NB)



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