The UK’s new prime minister, Liz Truss, is being urged to provide help to the business community in the West Country after being named the next leader of the Conservative party.
Ms Truss beat former chancellor Rishi Sunak to the top position within the party on Monday (September 5) after securing 57.4% of the vote in a leadership election.
She will take over from Boris Johnson on Tuesday and will face immediate challenges including the UK's cost-of-living crisis, which is putting a major strain on UK businesses.
Phil Smith, managing director of South West chamber of commerce Business West, congratulated Ms Truss on her win - but called on the party’s new leader to provide support to help businesses “ride out this economic storm”.
“In these challenging and uncertain times for businesses, with inflation reaching record levels and energy bills going through the roof, businesses need a strong leader to help them weather the storm,” he said.
“With a recession being forecast by the British Chambers of Commerce, working to support businesses must be the top priority, as the potential scope for business closures and/or redundancies will only add to the financial woes facing UK firms.”
The British Chambers of Commerce (BCC), of which Business West is a part, recently wrote to Mr Johnson, current chancellor Nadhim Zahawi and both Conservative leadership candidates - Ms Truss and Mr Sunak - proposing a five-point plan to provide support to UK businesses.
The chamber said “immediate measures” to help firms could include reducing VAT and business rates, and providing grants for businesses to install renewable technology.
Simon Peacock, head of South West at commercial real estate company JLL, said businesses in the West of England would be hoping the new prime minister will signal a “return to priorities” set out by the government in 2019.
“While attention has predominantly turned to the North and Midlands as part of the levelling up agenda, it’s crucial businesses in the South West aren’t forgotten and support is given to businesses and communities in the Western Gateway,” he said.
“South West firms will play a crucial role in the net zero journey but they need support and investment through the transition. A new government means a fresh start, but action is needed sooner rather than later.”
Graham Cox, director of Bristol-based Selfemployedmortgagehub.com, has called on Ms Truss to raise personal tax allowances, lower income tax and reverse increases to national insurance and corporation tax.
“Liz Truss has certainly got her work cut out. I think she's broadly got the right idea that taxes need to be cut. However, we can't tax our way out of our debt mountain, we need to aggressively grow the economy,” he said
“Short-term, Truss must address the cost of living crisis. An energy cap freeze appears the only way out, because we just don't know how expensive energy will become, or for how long.”
Ollie Hayes, a former professional rugby player, personal trainer and founder of So Fit Bath, believes Ms Truss has found herself at the “bottom of a grim economic ruck”.
“The one positive now is that we now have a new PM who can actually focus on the pain businesses and households are facing rather than hustings. But the challenge Liz Truss faces is immense,” he said. “Hopefully she can deliver the goods.”
Dave Kelly, co-founder of Bristol-based butcher Ruby & White, added: “Liz Truss has been thrown right in at the deep end. This country is on the brink of economic collapse due to the cost-of-living crisis so she needs to be bold and act rapidly. Only time will tell whether her policies bring us back from the brink or send us into the abyss."
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