The government is being urged to do more to support the business community amid the cost-of-living crisis in the UK. The rate of inflation - the price of goods and services - rose to 10.1% on Wednesday (August 17), hitting a new 40-year high.
The boss of South West chamber of commerce Business West has said it is "crucial" the government "takes action" by showing it has plans to aid economic recovery - despite the current political uncertainty.
Phil Smith, managing director of Business West, said firms were facing "myriad issues" including soaring energy prices, which are due to skyrocket during the autumn.
“The two main choices which would have the most immediate impact would be to reform the Shortage Occupations List to help fill the 1.3 million current job vacancies and reduce businesses’ energy costs by expanding the energy bills rebate scheme," said Mr Smith.
A recent Business West survey found that many firms are expecting to raise their own prices over the next quarter, with utilities, labour costs, and raw materials the main driver behind the move.
Mr Smith said the autumn Budget would be an opportunity for the new prime minister - and chancellor - to put in place a plan to help stabilise the economy.
"Businesses have been telling us about this inflation shock for over a year now," said Mr Smith. "With no energy price cap for businesses, this is forcing some businesses to close, so it is imperative the right support is available to avoid further economic downturn."
Responding to the rise in inflation on Wednesday, Chancellor Nadhim Zahawi said getting inflation under control was his "top priority".
"I understand that times are tough, and people are worried about increases in prices that countries around the world are facing," he said. "We are taking action through strong, independent monetary policy, responsible tax and spending decisions, and reforms to boost productivity and growth.”
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