Help us weather the storm, firms beg the Government
A BUSINESS group yesterday called on the Government to help firms weather a “perfect storm” of spiralling costs and staff shortages.
Shevaun Haviland, director general of the British Chambers of Commerce, said action was needed to save the economy as the cost of doing business crisis continues to worsen.
She told the BCC’s annual conference in London that Chancellor Rishi Sunak’s Spring Statement was a “missed opportunity” and warned ministers not to impose any more tax increases on businesses.
She said: “Increasing costs of raw materials over last summer, supply chain and shipping issues, problems in recruiting people, and, by this March, spiralling energy prices...it really is the perfect storm for businesses, firmly putting the brakes on recovery.
“This has to change.We are on limited time. The Government has until the Autumn Budget to reset, rethink and get their house in order.”
She called on ministers to do more to fill jobs, including an urgent review of the Shortage Occupation List, and reduce red tape. The BCC did, however, welcome the Government’s commitment to cut trade barriers.
William Bain, its head of trade policy, said: “It would be great to see this ambition now being progressed in the Government’s trade deals.”
Separate research from the Institute of Directors found bosses’ optimism in the UK economy had fallen to its lowest level since the early months of the pandemic.
Nearly nine in 10 business owners expect their costs to rise in the next 12 months – a record high.
The top three issues for directors are the UK’s economic conditions, skills shortages and employee skills gaps, then employment taxes.
Kitty Ussher, chief economist at the Institute of Directors, said: “Although many business leaders are still planning for growth, they see the external economic environment as working against them.
“This comes in the form of inflation, staff shortages and the government’s own decision to raise employers’ national insurance.”