The British Chambers of Commerce (BCC) said companies faced a host of challenges which threaten the survival of many, including eyewatering energy bills, labour shortages, 40-year high inflation, and rising interest rates.
“A lot of independent retailers and hospitality businesses are really, really struggling at the minute. That’s the immediate challenge that we have to address.
“It’s one of the reasons why we wanted to get the business rates holiday reintroduced, the same as we had during Covid.”
The BCC said its latest research highlighted an “alarming” drop in business confidence and conditions, with key economic indicators falling back to Covid-crisis levels.
The BCC published a manifesto setting out 17 policies it said were needed to tackle challenges facing businesses.
The demands included investment in infrastructure, support for energy costs, help with hiring skilled workers and the removal of trade barriers.
BCC director general Shevaun Haviland said: “Our research indicates business confidence has plummeted to alarmingly low levels not seen since the height of the pandemic.
“The political and economic uncertainty over the past few months and the turbulent financial conditions following the Government’s mini-budget have damaged this even further.
“Businesses can’t afford to see Government make any knee-jerk decisions that damage long-term growth.
“It must create stable conditions for businesses to invest and grow, otherwise we will be starting from a very weak base to power our recovery once global economic conditions stabilise.
“With a new Government and Prime Minister at the head of the table, it is high time we saw a long-term growth plan that involves investment in people and skills, supports businesses to adapt and thrive and builds good relationships with our global allies to get British businesses selling again.”
“In addition to recent fuel duty and VAT cuts, business rates holidays and government-backed loans worth around £400 billion, our Energy Bill Relief Scheme means that businesses will pay less than half the predicted wholesale cost of energy this winter.
“In the long term, we are wholly focused on supporting businesses of all sizes, championing the drivers of growth that will help to create high-skilled jobs and unlock investment across the UK.”
