New Prime Minister needs to act fast to aid struggling businesses say Lancashire leaders

Business leaders in Lancashire have called for the new Prime Minister to implement rapid measures to tackle the economic and energy crisis and prevent companies going bust.
By Tim Gavell
Published 6th Sep 2022, 12:30 GMT
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Martin McTague, national chairman of the Federation of Small Businesses, which has its headquarters in Lancashire, said urgent action was required from the PM.

He said: “The challenge now is to deliver action that is big and bold enough to match the scale of the crisis threatening the existence of many small firms, and the jobs, livelihoods and communities which depend upon them.

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“Small firms, not protected by an energy price cap, are seeing bills soaring out of control. This is at a time of sky-high taxes, rampant inflation and supply chain disruption, creating a toxic mix which must be addressed urgently.

Liz Truss with her husband Hugh O'Leary, at the Queen Elizabeth II Centre in London as it was announced that she is the new Conservative party leader, and will become the next Prime MinisterLiz Truss with her husband Hugh O'Leary, at the Queen Elizabeth II Centre in London as it was announced that she is the new Conservative party leader, and will become the next Prime Minister
Liz Truss with her husband Hugh O'Leary, at the Queen Elizabeth II Centre in London as it was announced that she is the new Conservative party leader, and will become the next Prime Minister

“Small businesses are crying out for a comprehensive response which cuts taxes, limits spiralling bills, and provides direct cash support for the smallest businesses.

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“During the leadership campaign we were pleased that Liz Truss listened to our calls to reverse the recent hike in National Insurance and to look at lifting more small firms out of business rates.

“As she prepares her full package of emergency plans, we are ready and willing to work with the new Prime Minister and her team to protect the UK’s 5.5 million small businesses and the 16 million jobs within them, in communities in all parts of the UK.”

Martin McTague FSB National ChairmanMartin McTague FSB National Chairman
Martin McTague FSB National Chairman
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Babs Murphy, chief executive of the North and Western Lancashire Chamber of Commerce, said: “Our business community needs practical support measures now and now is the time for action. It is now over to the Government to take action to protect businesses, livelihoods and jobs to ride out this economic storm.”

The chamber has joined forces with the UK Chamber network to call for a five point plan to support business including:

1. Ofgem to be given more power to strengthen regulation of the energy market for businesses2. Temporary cut in VAT to 5 per cent to reduce energy costs for businesses3. Covid-style support by introducing Government Emergency Energy Grant for SMEs4. Temporarily reverse NICs and put money back into the pockets of businesses and workers5. Government to immediately review and reform the Shortage Occupation List to help bring down wage pressures and fill staffing vacancies

Related topics:Prime MinisterLancashireVATOfgem