Business groups plead for government to enact changes

The UK’s largest business organisations said the government needs to reverse the National Insurance hike, and cut VAT and fuel duty now if firms are to survive.

Both the Federation of Small Businesses and the British Chambers of Commerce said the government has the power to make immediate changes to support businesses across the country.

FSB national chair Martin McTague said the government can no longer sit on its hands after the release of the latest consumer price index figures that showed a 10.1 per cent increase – the highest since records began in 1997.

“We’re seeing a toxic cocktail of rampant inflation, high taxes, soaring energy costs and shrinking economic growth. Action is needed right now,” he said.

“While the consumer prices rate of inflation bursting through 10 per cent is eye-watering, producer input prices are up by more than double that figure and this will filter through, pushing up the cost of living even more.

“The cost-of-living crisis can’t be solved without addressing the cost of doing business crisis.

“That’s why we need to see a reversal of the hike in National Insurance, a cut in VAT and fuel duty, and help for struggling small firms on energy bills to match that being given to households.”

The unprecedented rise in the CPI was fuelled by the rise in food and non-alcoholic drink prices and Mr McTague said hospitality businesses are also feeling the pinch – from the B&B owner who now has to pay 50p per slice of bacon to the bar that has seen prices for mixers and soft drinks spiral.

Source Financial Accountant click here to read more.

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