Incoming Prime Minister Liz Truss must urgently help businesses facing "crushing cost rises" - that was the message from business leaders after she was this lunchtime named leader of the Conservative Party.
Ms Truss will take over as Prime Minister tomorrow, succeeding Boris Johnson, after she secured 57.4% of the vote in the party's leadership election.
She faces a massive cost of living crisis, with companies across the country fearing that soaring energy bills will force them out of business.
UK Hospitality chief executive Kate Nicholls said on Twitter: "We very much look forward to working closely with the Prime Minister and the new Cabinet in the coming weeks, as we strive to save the hospitality industry, which is experiencing crushing cost rises.
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"The new Government must act quickly and decisively to address the soaring energy bills that are facing consumers and businesses, a package of support is desperately needed if we are to be able to play our part in the UK’s economic recovery and growth."
CBI director-general Tony Danker tweeted: "Congratulations @trussliz on your appointment as UK Prime Minister.
"We look forward to working with you and your team to tackle the challenges facing households and businesses across the country to get the UK economy growing again."
Melanie Leech, chief executive at the British Property Federation, said: "We urgently need strong Government leadership after a period of drift. The new Prime Minister must address the immediate cost pressures facing businesses and families, but in parallel there must a clear focus on the longer-term objectives to tackle inequalities across the UK and transition to a greener, high-productivity economy.
"We look forward to working with Ms Truss to harness the power and potential of the property sector to deliver the homes, work and leisure spaces that will revitalise our town and city centres and underpin our future prosperity as a nation.”
Marco Forgione, director general of the Institute of Export & International Trade, said exports would be vital to Britain's economic future.
He said: "It is great to have an incoming Prime Minister with such a strong background in international trade. The progress made on Free Trade Agreements (FTAs) under her tenure as Secretary of State for International Trade was significant. That trade was also integral to the development policy she pursued as Foreign Secretary sent a strong message to the world that the UK is first and foremost a trading nation and a dedicated and committed ally.
"She takes over during what is a particularly challenging and turbulent economic period. We want to see an export led recovery that ensures that UK businesses have the tools, the skills, the knowledge and the expertise to seize the opportunities that arise through international trade.
"In particular we would like to see the government establish an MSME task force a micro small and medium enterprise which will look to provide immediate help and support on issues such as the rising cost of fuel and energy."
Steven Mason, an insolvency practitioner and senior manager at insolvency and corporate recovery practice Inquesta, said his firm had seen a 50% rise in inquiries from business owners in the past three months. That follows growing concern over rising energy costs and the impact they will have on businesses and on discretionary spending.
Mr Mason called for an energy support plan for businesses, including freezing energy bills, and for the planned raise in corporation tax to be scrapped.
He said: "We are witnessing a ‘perfect storm’, with the cost of living crisis, energy price hikes, a government in hiatus, spiralling inflation, the rising cost of raw materials, supply chain difficulties and Bounce Back Loans needing to be repaid, at the same time as consumers and householders rein in their spending amid the overall uncertainty.
“While the focus during the Conservative Party leadership campaign was largely on support for households, there needs to be urgent action by Liz Truss and her new government to support SMEs. It’s absolutely necessary to keep businesses afloat.
“We’re seeing record numbers of inquiries from worried business owners who, perhaps having pushed off dealing with issues over the summer in the hope that things would transpire to not be as bad as feared, are now having to face up to the unpleasant reality engulfing them.”
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