Business groups have called for “decisive action” from next Prime Minister Liz Truss to avoid company failures as they tackle rising energy bills.
Ms. Truss promised her supporters a “bold plan” to cut taxes and tackle the energy crisis after winning the Tory leadership race ahead of Rishi Sunak on Monday.
The new Conservative Party leader, who will meet the queen on Tuesday for her formal transition as prime minister, has previously outlined plans to eliminate Sunak’s proposed corporation tax and implement more corporate tax cuts.
On Monday, several business groups congratulated the current foreign minister on his appointment, but called for urgent action to help British industry amid spiraling inflation and waning spending power among consumers. .
Stephen Phipson, Chief Executive Officer of Manufacturers Make UK, said: “We congratulate Liz Truss on her appointment and look forward to discussing the critical importance of manufacturing, an industry that offers millions of well-paid jobs. and highly skilled throughout the whole of the UK.
“But the industry right now needs decisive action from the new government to help it overcome a prolonged period of unprecedented increases in energy bills, rising cost of raw materials and critical labor shortages in order to maintain Britain’s place as an innovation leader in the world stage. “
Earlier on Monday, the latest monthly S&P Global / CIPS UK services PMI survey suggested a worse-than-expected performance for the country’s services sector last month.
Businesses experienced the slowest pace of growth in a year and a half as rising cost of living weighed on customers.
Kate Nicholls, managing director of UKHospitality, said the commercial group would like to work closely with Ms Truss and her cabinet “as we strive to save the hospitality industry”.
The head of the trade group said: “The new government must act quickly and decisively to address the surge in energy bills that consumers and businesses are facing.
“With the right support package, including a reduction of the main VAT rate for the sector to 12.5%, a vacation on corporate rates, the deferral of all environmental levies, the restoration of an HMRC Time to Pay and the reintroduction of a trade credit insurance scheme for energy: the sector will be in a good position to help growth by generating local jobs and investments. “
During his acceptance speech, the new leader said he would cut taxes in an effort to grow the UK economy over the next few years.
It comes despite the latest Bank of England projections warning that the UK could face a recession in five successive quarters.
Elsewhere, the British Retail Consortium (BRC) has called for Ms. Truss and her cabinet to intervene on corporate rates, the property tax charged to street businesses.
“Businesses need clarity about the government’s intentions as soon as possible so they can understand the inflationary impact of any political decision,” said Helen Dickinson, chief executive of the BRC.
“One immediate way the government can help retailers support their customers is to freeze the corporate rate multiplier for all retail businesses for the next financial year, protecting the industry from inflation-related rate hikes and offering more. ability to contain prices, protect jobs, and support the economy “.