Shropshire Chamber of Commerce has urged new Prime Minister Liz Truss to take ‘immediate steps’ to support the economy.
Speaking after the result of the Tory leadership election was announced this afternoon, chief executive Richard Sheehan said: “The last few months have been difficult for everyone, but time is running out. Urgent action is needed to deal with the costs’ crisis.
“The British Chambers of Commerce believes the country has already entered into a recession, and expects inflation to hit 14% in the months ahead.
“Businesses across Shropshire don’t have an energy price cap, and are telling us about completely unsustainable rises in their energy bills. They are also finding it difficult to secure new fixed term contracts to protect them against further price hikes.
“Unless the new Prime Minister addresses these problems head-on then it is clear that the economy will drift further into dangerous waters and the outlook for both businesses and consumers will be bleak.”
Shropshire Chamber has backed the five-point business support action plan sent to the Treasury and Liz Truss’s team by the BCC. It calls for:
- Energy regulator Ofgem to be given more power to strengthen regulation of the energy market for businesses
- A temporary cut in VAT to 5% to reduce energy costs for businesses
- Covid-style support for businesses with Government Emergency Energy Grant for SMEs
- Temporary reversal of the National Insurance rise, putting money back into the pockets of businesses and workers.
- An immediate review and reform the Shortage Occupation List to help bring down wage pressures and fill staffing vacancies
The BCC says it is now ‘imperative’ that businesses see movement on the proposals.