Shropshire Chamber urges business support before it is too late

Shropshire Chamber of Commerce has backed a five-point plan which the Government is being urged to put into place to provide urgent support for struggling businesses.

The British Chambers of Commerce (BCC) has outlined a series of measures in a letter to the Prime Minister, Chancellor of the Exchequer and Tory Party leadership candidates.

It calls for the energy regulator Ofgem to be given more power to strengthen regulation of the energy market for businesses and for a temporary cut in VAT to five per cent to reduce energy costs for businesses.

It also asks for Covid-style support for businesses, with a Government Emergency Energy Grant for small and medium-sized enterprises (SMEs), the temporary reversal of the National Insurance rise, and an immediate review and reform the Shortage Occupation List to help bring down wage pressures and fill staffing vacancies.

Shropshire Chamber deputy chief executive Ruth Ross said the cost of living crisis and the 'cost of doing business' crisis were two sides of the same coin.

She said: “With the Bank of England projecting a recession and consumer confidence reported to have hit a 50-year low, it’s clear that we are running out of time to offer businesses the support they need.”

The call comes as Shropshire Chamber has just launched its latest quarterly economic survey, which forms part of the UK’s largest fact-finding exercise gauging the confidence and health of the business community.

The chamber said it wants to build up a comprehensive picture of the situation in Shropshire, to see if it mirrors the nationwide mood.

Mrs Ross said: “Over the last 18 months, research across the chamber network has shown unprecedented inflationary pressures hitting businesses.

“So it comes as no real surprise that two thirds of firms say they are now expecting further price rises, driven by energy bills, raw materials, and labour costs.”

Shropshire Chamber said it was also ‘worrying’ that the percentage of firms expecting to grow in the next 12 months appears to be now showing a significant decline.

Mrs Ross said: “Firms cannot afford to wait another month without practical support measures being put in place. Now is the time for action, which is why we are supporting this five-point plan.”

Shevaun Haviland, director general of the BCC, said: “Since the start of 2021 we have been repeatedly hearing the same message; the cost of doing business is increasing.

“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.

“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.”

Businesses can add their views to the chamber's quarterly economic survey at bit.ly/3Ps3XKs