Call to support firms as costs soar

The Government is being urged to provide more financial support to businesses as the cost of living surges in the UK.

South West chamber of commerce Business West said firms were being hit with rising supply chain and wage inflation, soaring energy bills and higher taxes.

Inflation rose to 7 per cent in the year to March the highest rate since 1992 - driven by rising fuel prices and energy bills, according to the Office for National Statistics (ONS).

Business West is now calling on the government to expand the energy bills rebate scheme to help small firms, particularly energy intensive businesses.

The scheme, announced by Chancellor Rishi Sunak, will see domestic electricity customers being given a £200 loan towards their energy bills from October, which will be paid back in instalments over five years.

“The government must provide urgent financial support to businesses,” said Phil Smith (inset), managing director of Business West. “Firms are now being hit with rising supply chain and wage inflation, surging energy bills, and higher taxes which will damage UK output including consumer spending.”

Economic growth slowed more than expected in February, despite a surge in January of holiday bookings as Covid restrictions eased.

The ONS said gross domestic product (GDP) rose by 0.1 per cent in February, down from monthly growth of 0.8 per cent in January, as the economy began recovering from a wave or Omicron infections.

“The significant slowdown in growth shown in the ONS report, combined with the pressure on firms to rise prices, shows the UK economy was faltering even before the impact of Russia’s invasion of the Ukraine,” a spokesperson for Business West added.