The British Chambers of Commerce has called for more support for businesses after the Government announced a series of support packages specifically for the ceramics and chemicals industry and to support families with children over the summer months.
Some £470 million was announced for the ceramics and chemicals industries to support decarbonisaton, skilled jobs and energy efficiency. The Chancellor also said VAT would temporarily be cut from 20% to 5% on children’s meals served in restaurants, children and family tickets for cinemas, theatres, concerts, shows and exhibitions and admission tickets for both children and adults for leisure attractions.
Earlier in the week, a 5p cut in fuel duty which had been due to end in September was extended to the end of the year.
Kate Shoesmith, Director of Policy at the British Chambers of Commerce, said: “It’s important to remember that the cost of living and the cost of business are two sides of the same coin.
“While most of the Chancellor’s statement was consumer focused, some additional Government support for both the chemicals and ceramics sectors is welcome. Our members will be looking closely at the details, alongside recent changes to the British Industrial Competitiveness Scheme.
“The announcement that there will be no fuel duty rise this year will offer some relief to firms across the UK. Almost two-thirds (61%) of transport firms told us in Q1 that fuel prices were a cost pressure.
“While a temporary VAT cut is welcome, the usual rate for the UK hospitality and tourism sector is higher than in Ireland and other EU economies, hitting growth and competitiveness. Further action on this levy needs to be considered.
“The reality is that ministers need to go further to help ease the costs businesses are facing right now. Our latest survey shows 73% citing labour costs and 52% citing energy costs as price drivers, even before the escalation in the Middle East. Business confidence remains low and firms are struggling to invest.
“Raising productivity must be the long-term pathway to tackling both the cost of living and the cost of doing business.”
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