British Chambers of Commerce calls for immediate emergency Budget

The British Chambers of Commerce is calling for an immediate emergency budget to deal with the costs crises facing businesses and people throughout the country. 

It has developed a three-point action plan that would allow firms to keep a lid on rising prices, boost productivity and ease cost pressures.

The proposals include:

• Ease upfront costs of doing business by reversing the recently introduced National Insurance increase until at least 2023/24.
• Help firms manage the impact of rising energy prices by cutting VAT on their energy bills from 20% to 5% for a minimum of one year.
• Address labour shortages by reinstating free Covid tests for companies to ease the strain on productivity caused by persistent high absences

Together the three steps would take the pressure off businesses that are battling to keep the economy afloat and offer a route to higher productivity and tax receipts in the future.

Shevaun Haviland, Director General of the BCC, said: 

“These are simple, straightforward measures that can be quickly reversed when the economy is in better shape.

“The Treasury and HMRC have proven their ability during the pandemic to implement similar changes quickly and efficiently. Making these changes would have an immediate benefit for both businesses and the public.

“The costs crises facing firms and people in the street are two sides of the same coin. If we can ease the pressure on businesses then they can keep a lid on the price rises being driven by surging energy bills, staff shortages and higher taxes.

“Firms will then have the breathing space they need to raise productivity and strengthen the economy. But a change of course is needed now, if the government does not act immediately then rising costs will put our economic recovery in a stranglehold that will have repercussions for years to come.

“The government has a variety of financial levers it can pull, and this is the time to use them. Acting today will then give businesses a chance to create the future profits needed to fill tax coffers.”