100k firms report rising import costs since creation of supply chain taskforce
Around 100,000 more firms have reported rising import costs since the creation of the Government's supply chain taskforce, according to analysis by Labour.
Shadow chancellor Rachel Reeves warned pressure on their costs ultimately passes through to consumers and was contributing to a "cost-of-living crisis for families".
A breakdown of the ONS figures showed that between october 18 and November 14, two thirds (66.5 percent) of importing firms reported an increase in import costs, Labour said.
Between September 20 and October 3, half (49.1 per cent) of importing firms reported an increase in import costs.
The data, Labour added, showed an additional 17 per cent of importing firms were experiencing "spiralling costs", equivalent to 105,722 more firms, based on the overall number of businesses in the economy and the share that do any imports.
Labour frontbencher Ms Reeves said that since the Government appointed a supply chain "tsar" just over a month ago "another 100,000 businesses who import are seeing the costs of imports rise".
She said: "That is a challenge for them because that puts pressure on their costs, but ultimately it passes through to consumers and that's why we' re seeing now the rate of inflation at 4.2 per cent as businesses have nothing to do with those costs apart from pass them onto consumers.
That's why we're seeing now the highest rates of inflation in a decade and I think the highest rates of inflation at factory gate prices for 20 years now."
She added :" this is all contributing to a cost-of-living crisis for families who are seeing the costs of, whether it is their gas and electricity bills, the weekly food shop or the price at the petrol pump all increasing and that's only likely to get worse."
Ms Reeves, the MP for Leeds West, argued the Government response was to "whack up taxes" citing the forthcoming rise in National Insurance contributions, a lack of "fundamental reform" to business rates and an "increase" in council tax.
Ms Reeves also warned the Prime Minister's "totally disrespectful" CBI speech may have put at risk future in ward invest was just a quip, but it turns out to ment in UK businesses.
She said"f *** business" is now the" organising principle" of mr John son' s government, adding his speech was the "final straw for a lot of businesses". With its social care proposals and the cancellation of Northern Powerhouse rail and thehs 2 line to Leeds, the Government's "commitments to levelling up are in tatters now", she added.
Labour frontbencher Ms Reeves said Mr Johnson's "bumbling" address, which saw him lose his place in his notes, impersonate a car and talk about a visit to pep pa pig world, would play badly with business decision makers and investors who would see "somebody in charge of this country who has no idea what's going on".
She said: "The Prime Minister said a couple of years ago 'f*** business', and we thought that be, I think, the organising principle of this Government, and the disrespect that he showed towards business in his speech on Monday, I think, is the final straw for a lot of businesses who are fed up of the complacency and the disregard that the prime Minister and this Government are treating them with.”