Last week, the Bank of England’s Monetary Policy Committee announced an increase in interest rates to 1.75% from 1.25%, in response to rising inflation which is forecast to reach over 13% in October 2022. The news of increasing interest rates was accompanied by the Monetary Policy Committees’ predictions for the UK to enter a recession by the end of this year, which is likely to cause business confidence to remain low in the forthcoming months.
The increase in inflation, alongside the impacts of the war in Ukraine and the surge in energy and fuel costs has caused the cost of living and doing business crisis to emerge. Businesses across the nation have been dealing with financial pressures from all directions which has consequently impacted cash flow as well as business growth and investment, all of which are key factors to a thriving economy.
Sara Williams, CEO of Staffordshire Chambers of Commerce, said: “In order to rebuild the UK’s economy it is critical that businesses are provided with the necessary support, especially as costs continue to increase.
“Many firms will also feel more pressure to support staff by increasing wages and salaries to meet the demands of the cost of living. The government needs to prioritise business support and ease some of the pressure that they are facing, with immediate measures including cutting VAT from energy bills, expanding the shortage occupation list, and cutting up front costs for businesses.”
Staffordshire Chambers of Commerce runs an Employment, Skills and HR Forum with meetings taking place once every quarter. The next meeting, taking place on the 9th of September will address the cost of living and doing business crisis and will discuss ways in which firms can support their staff, especially as the country approaches a recession.
To book your place at the next forum please email Suzanne.quinn@staffordshirechambers.co.uk for more information.
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