Business leaders call for stability after Chancellor's statement
Business leaders have issued fresh calls for stability after the Government scrapped almost all of the tax measures it announced in its mini-budget three weeks ago.
Richard Sheehan, chief executive of Shropshire Chamber of Commerce, said the Government’s ‘chop and change’ economic plans was making it difficult for businesses in the region to plan for the future.
It comes as new Chancellor Jeremy Hunt dramatically scaled back support for household energy bills and ditched tax cuts promised by his predecessor, Kwasi Kwarteng, as he seeks to restore stability following weeks of turmoil on the financial markets.
“Businesses crave stability, and need to be able to confidently plan for the future. All of this chopping and changing is making it impossible for Shropshire employers to do this with any degree of certainty," Mr Sheehan said.
“The most worrying aspect of this latest announcement in the decision to strip back energy support from a two-year pledge, to a guarantee which expires in April.
“Energy costs are one of the factors which are keeping many Shropshire businesses awake at night.”
He added: “We appreciate that the new Chancellor faces a difficult balancing act – calming the volatility of the markets and restoring business confidence without piling financial misery onto families and businesses.
“But as the British Chambers of Commerce quite rightly points out, the Government is failing to fully understand that the cost of living and cost of doing business crises are two sides of the same coin.
“We still need a clear vision on how it will support firms and the communities that rely on them to thrive, and time is of the essence.
“We now await the more detailed economic statement at the end of this month with interest, and can only hope that it eases anxiety and helps to rebuild our country’s battered economic reputation.”
The head of manufacturing at national audit, tax, advisory and risk firm Crowe is among those calling for stability above all else in the UK economy.
Johnathan Dudley, Midlands managing partner at Crowe, said: “After a period of extreme political turmoil, it’s now vital for the good of business and the country that we get stability and certainty for business."
He said he hoped the announcements made by Mr Hunt would achieve that.
He pointed out that the recent market turmoil has corresponded with the news that manufacturing output is shrinking.
“It’s little surprise really, with the total uncertainty on how manufacturers will pay their power bills when the promised, and seemingly maintained, energy business support package ends in the spring," he added.
