The UK's new Prime Minister Liz Truss must introduce an emergency budget and set out a clear plan to mitigate rising costs, business leaders in Wales have said today.
Reacting to the news that the Foreign Secretary was confirmed as the future leader, business leaders from across Wales share their views on what they would like to see the new Prime Minister do in her first few weeks in office.
Ms Truss defeated former Chancellor Rishi Sunak after she secured 57.4% of the vote in the Conservative Party's leadership election.
Read more: Welsh firms face challenging future as forecasters predict a recession for the UK
She faces a massive cost of living crisis, with companies across the country fearing that soaring energy bills will force them out of business.
Chambers Wales president Paul Slevin said that introducing an emergency budget must be a priority for the new PM.
He said: "After a summer of uncertainty for businesses and individuals due to the cost-of-living crisis, inflationary pressures and spiralling energy costs, providing clarity and taking decisive action on these issues, such as introducing an emergency budget, must be a priority for the Prime Minister as they enter office.
"Liz Truss must now lead the Government and do what is needed to protect the economy, businesses and people’s livelihoods, restore confidence and promote growth."
Mr Slevin also set out a list of proposals in the British Chambers of Commerce’s five-point plan to support businesses. The measures can be implemented swiftly and make a significant difference, he said.
These included:
- Ofgem to be given more power to strengthen regulation of the energy market for businesses
- Temporary cut in VAT to 5% to reduce energy costs for businesses
- Covid-style support by introducing Government Emergency Energy Grant for SMEs
- Temporarily reverse NICs and put money back into the pockets of businesses and workers
- Government to immediately review and reform the Shortage Occupation List (SOL) to help bring down wage pressures and fill staffing vacancies
Head of ACCA Cymru Lloyd Powell said businesses will need significant government support to overcome the current financial challenges.
He said: "While the Covid-19 crisis may have eased, the challenges facing the new Prime Minister are no less acute. Individuals and businesses are again likely to require significant government support to overcome the current financial challenges.
"Unsurprisingly, our most recent SME Tracker research suggests a sharp decline in both hiring and growth ambitions. The incoming government needs to set out a clear plan to mitigate rising costs facing small firms; prioritise improvements in business-facing government departments such as HMRC, and work to rebuild trust in government and business through reforms to tax and audit.
“The intense cost pressures facing businesses means cashflow management is crucial. Seeking out the forecasting skills of financial advisors will be an important way for SMEs to weather the economic storm.”
Robert Lloyd Griffiths, director of ICAEW in Wales, said: "Congratulations to Liz Truss on becoming the leader of the Conservative Party and our next Prime Minister. Celebrations will be short-lived given the economic challenges facing us.
"Ministers at Cardiff Bay and Westminster must work together to provide targeted support for struggling businesses and households this winter, and to inject growth into the economy. We will be writing to the new Prime Minister and Chancellor to set out the concerns being expressed by our 3,500 members in Wales and the businesses they advise."
CBI director-general Tony Danker said Ms Truss has "businesses' full support in meeting shared challenges together, head on".
He said: "Most immediately, support for struggling households and firms in jeopardy is top of the in-tray. This may not be the pandemic, but the exceptional circumstances we now face mean Government must play a central role in supporting our economy.
“And if we’re serious about getting the UK growing again, ensuring any slowdown is short and shallow, we need a serious plan for growth. It needs to be bold, unconventional and rooted in the very real opportunities that still exist for the UK to thrive.”
Wales’ First Minister Mark Drakeford urged the UK’s next prime minister to work with him to “save millions from hardship this winter”.
Mark Drakeford congratulated Liz Truss but said she must act now to tackle the cost-of-living crisis.
In a tweet on Monday, Mr Drakeford said: “There is no more time to waste – action is needed now.”
Leader of the Welsh Conservatives Andrew RT Davies congratulated Ms Truss, who he said he backed for leader, and called for the party to unite behind her.
In a statement he said: “Throughout her political career and this contest, we have seen someone with the tenacity, ideas and stoicism required to lead the Conservatives into the next election and the country through a difficult period.
“There is a lot of work to be getting on with, especially in tackling the cost-of-living crisis, and I look forward to seeing Liz’s ideas put into action to alleviate the struggle millions are facing.”
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