British Chambers of Commerce calls for immediate emergency budget

British Chambers of Commerce calls for immediate emergency budget
The British Chambers of Commerce (BCC) is calling for an immediate emergency Budget as businesses and consumers throughout the country struggle with rising costs.
It has developed a three-point action plan that would allow firms to control rising prices, boost productivity and ease cost pressures.
The proposals include:
• Reversing the recently introduced National Insurance increase until at least 2023/24, to reduce the cost of doing business.
• Helping 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.
• Addressing labour shortages by reinstating free Covid tests for companies, to ease the strain on productivity caused by persistent high absences
“These are simple, straightforward measures that can be quickly reversed when the economy is in better shape,” said Shevaun Haviland, Director General of the BCC. “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.”
She added: “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.”