Responding to measures announced by the Chancellor this lunchtime, Kate Shoesmith, Director of Policy at the British Chambers of Commerce said:
“It’s important to remember that the cost of living and the cost of business are two sides of the same coin.
“While most of today’s statement was consumer focused, some additional government support for both the chemicals and ceramics sectors is welcome. Our members will be looking closely at the details, alongside recent changes to the British Industrial Competitiveness Scheme.
“Yesterday’s announcement that there will be no fuel duty rise this year will offer some relief to firms across the UK. Almost two-thirds (61%) of transport firms told us in Q1 that fuel prices were a cost pressure.
“While a temporary VAT cut is welcome, the usual rate for the UK hospitality and tourism sector is higher than in Ireland and other EU economies, hitting growth and competitiveness. Further action on this levy needs to be considered.
“The reality is that ministers need to go further to help ease the costs businesses are facing right now. Our latest survey shows 73% citing labour costs and 52% citing energy costs as price drivers, even before the escalation in the Middle East. Business confidence remains low and firms are struggling to invest.
“Raising productivity must be the long-term pathway to tackling both the cost of living and the cost of doing business.”
ENDS