No help for businesses in the Chancellor’s cost of living support package?

26th May 2022

No assistance for business in the Chancellor’s relief package

Commenting on the announcement of a further package of financial support to help the country weather the cost-of-living crisis, Alan Mitchell, Chief Executive of Fife Chamber of Commerce, said: “It has obviously escaped the Chancellor’s notice that businesses are facing inflationary pressures and rising costs that are just as big and just as damaging as UK households. Their fuel and energy costs are shooting up. They are having to pay much more to attract and retain employees. Employer National Insurance rates have risen by 1.25%. Supply chain inflation is at record levels. Despite all this, there is no help on offer from the Chancellor.

“The only reference to business in his statement was to announce a windfall tax on oil and gas companies to pay for some of the measures he announced today, a windfall tax his government has always said was the wrong approach to take. But even the windfall tax won’t pay for all the measures he announced, the rest will come from additional borrowing. There is a legitimate debate to be had about the merits of additional borrowing – it will eventually have to be repaid – but having made the decision that households needed help now and borrowing to pay for it was the right thing to do, the Chancellor should have extended support to businesses as well. Many face a very difficult few months of trading and if they contract or fail today, we will all lose tomorrow through fewer jobs and less taxes to fund public services.”

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