Business leaders in Coventry and Warwickshire are calling on the Chancellor to reveal how firms that are hardest hit by crippling energy costs are going to be supported beyond next April.
In his latest statement, Jeremy Hunt stated that a treasury-led review is being launched into what support can be offered with energy bills from April onwards when the current Energy Bill Relief Scheme is set to end.
It was also confirmed that plans to reverse the scheduled 1.25 per cent rise in National Insurance for the next tax year have been retained, while corporation tax will continue to rise to 25 per cent for larger businesses.
Further fiscal plans are set to be announced by the Chancellor on Monday 31 October.
Corin Crane, Chief Executive of the Coventry and Warwickshire Chamber of Commerce, said: “While we appreciate that the government has had to act to reassure the markets, once again businesses are being left in limbo and unable to plan for their medium-to-long-term futures.
“Energy bills are one of the biggest worries for many of the region’s businesses, and while we welcome that the government’s recognition that further help is needed beyond April, a lack of detail around any review or when it is likely to conclude with its recommendations, does nothing to ease our concerns.
“Now more than ever, the government should be consulting with businesses from a variety of sectors as part of this treasury-led review so they can truly understand the reality business owners they face on a day-to-day basis, and provide a tailored support package that will help businesses to plan further ahead.
“It is that message our Chamber of Commerce will be taking to our Manufacturing, Automotive, Engineering and Construction parliament roundtable on Tuesday 25th October.”
Responding to the Chancellor’s statement this morning, Shevaun Haviland, Director General of the BCC, said:
“The Chancellor’s buzzword was stability. But what we’ve seen from him is a plan for today and nothing for tomorrow.
“Following the economic turmoil of the last few weeks he had to press the reset button.
“But businesses will be dismayed by the decision that looks set to strip back the energy support for firms from next April. This will be a hammer blow for many who were already worried about how they will survive.
“The government must commit to a full consultation with firms ahead of that cliff-edge to provide some certainty on where any targeted support will go. Energy costs keep business owners awake at night, alongside rising inflation and interest rates.
“Keeping support for the NICs reversal in place will be some relief for hard-pressed firms, but on its own will not be enough.
“The Chancellor has a delicate balancing act to carry out. He must restore order to the markets if he is to prevent further damage to business and consumer confidence. But if he is serious about stability and growth, he must speak to our Chamber Network to truly understand the pressures firms face.
“People run businesses and businesses rely on people. The Government is failing to fully understand that the cost of living and cost of doing business crises are two sides of the same coin. We still need a clear vision on how it will support firms and the communities that rely on them to thrive.
“It must be clear in how it plans to do this, to prove it is serious about helping businesses through the difficult months ahead. Time is of the essence.”