After a revised mini budget was announced on Monday by newly appointed Chancellor Jeremy Hunt, stability is the key message the government are portraying following the economic turmoil in the last few weeks, which has included the sacking of former Chancellor Kwasi Kwarteng and a number of economic policy U-turns. This morning’s figures from the Office for National Statistics show that inflation has risen to a 40 year high of 10.1% from 9.9% in August.
Sam Merrett, Policy Executive at Herefordshire and Worcestershire Chamber of Commerce, said: “Todays inflation figures from the Office for National Statistics show that achieving economic stability will be a tough task without urgent action from government. Inflation has risen to a 40 year high of 10.1%. The rise in inflation is driven by the highest food price increases in decades. This is a major concern for businesses that are struggling to cope with inflationary pressures as well as the rising energy costs to their business. As prices continue to rise, this means added costs for businesses buying materials and products to run their business.”
“The decision from Jeremy Hunt to cut back energy support from April next year comes at a significant cost for businesses worried about their survival. A clear vision for support for businesses must be a priority for government to relieve the severe pressure on businesses this winter. A long-term plan to stabilise the economic environment for businesses must be a priority, with business rates bills rising in line with inflation and increased taxes in April next year. In the current economic conditions, growth for businesses is looking extremely unlikely”.
“Therefore, it is vital that the government support businesses by stabilising the market and providing much needed support amongst the current cost of doing business crisis as the economy continues to weaken.”
“The Herefordshire & Worcestershire Chamber of Commerce continue to work with central government to support business concerns. The Quarterly Economic Survey is a direct method for reporting business concerns in the last three months for us to put to central government on your behalf. The next survey runs from the 7 November to 28 November.”