As tensions continue to rise between Russia and Ukraine, there has been increased fears over Europe’s gas supply crisis becoming much worse. Russia is Europe’s largest supplier of gas, with one third flowing through Ukraine’s pipeline to countries across the continent, therefore, a Russian invasion of Ukraine would mean that there is a high chance of gas exports being cut.
The last few months have seen gas market prices increase significantly, surpassing record highs and threatening both domestic and business use. The rise in energy costs alongside the list of other pressures that businesses are currently facing has created fear amongst many firms.
In a letter to Rishi Sunak, the heads of CBI, the British Chambers of Commerce, the Institute of Directors, Make UK, and the Federation of Small Businesses said that the surge in domestic and business bills would negatively impact the economic recovery of the UK. All five businesses have demanded that the government act urgently and decisively in order to support consumers with their spiralling bills. It is essential that businesses are supported whilst managing their cashflow due to the increase in inflation and raw material cost.
Sara Williams, CEO of Staffordshire Chambers of Commerce said: “The pressures that firms are currently facing are insurmountable. Businesses need to be relieved of the overwhelming financial demands, especially as restrictions have now been removed. By securing a stable supply of energy and gas, businesses and consumers will be relieved of the increase in living costs that they are currently facing.
“The scale of this crisis is leaving firms with little protection as they deal with inflation, a surge in the cost of raw materials and tax increases. Many firms in the manufacturing and ceramics sectors have explained to us that they have little choice but to pass these cost increases onto their customers, which is adding further inflationary pressures.”
Staffordshire Chambers of Commerce is prioritizing supporting businesses towards decarbonising in order to achieve the government’s target of reaching net zero by 2050. Businesses can continue to compete in the global market by improving their environmental and social performance. Affordable and low-carbon energy options are crucial in order to support businesses in reducing their carbon footprint. In addition to this, cutting costs and carbon through improved energy practice can also support firms through the energy crisis.
Post-Brexit Trade:
The last six months have demonstrated that there are significantly lower EU imports to the UK compared to three years ago, with a smaller reduction in exports to the EU. The British Chambers of Commerce has reported that exporters are uniquely facing a wide range of issues, from unprecedented inflationary pressures as well as a global supply chain crisis and a range of new requirements following the EU trade deal.
23% of firms surveyed said that finding a businesses partner or distributor overseas would encourage them to start exporting or to export more. 16% of firms have explained that they require support with trade documentation would encourage them to increase the amount of business they do overseas.
The British Chambers of Commerce have released their new Trade Manifesto which aims to expand and diversify the number of exports from the UK across the world. You can find out more information by clicking here.
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