Rising prices and the impact of the omicron variant are creating a “nightmare before Christmas” for thousands of companies, business groups say.
Concerns have been rising in recent weeks that rising inflation has been hampering many firms, and now figures from the Office for National Statistics have shown a 14.3% growth in input prices for businesses, as well as a 5.1% rise in inflation.
There are also worries that the rapid spread of the omicron coronavirus variant is hitting parts of the economy such as the hospitality sector particularly severely, with no Government support grants or furlough scheme to soften that blow.
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A number of business surveys - including the NatWest North East Business Activity Index and the Lloyds Bank 海角视频 Recovery Tracker - have pointed to slowing business activity, while this week’s official unemployment figures showed joblessness rising in the North East at a time when it was falling in most other regions.
Now business groups are calling on the Government to return some form of support for companies most affected by the current pressures.
Federation of Small Businesses (FSB) chairman Mike Cherry said: “It’s not only Plan B restrictions that small firms in England are having to grapple with as we commence the 10-day countdown to December 25th.
“Surging operating costs, labour shortages and supply chain disruption are adding to the nightmare before Christmas being experienced by millions of small business owners.
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“The imposition of Plan B means a new set of rules for small firms to get across, and a further hit to already suppressed consumer demand for festivities, in an environment where high prices are already eroding returns. Despite that fact, business support measures have not been adjusted to reflect new realities.
“Many small businesses – especially those in the hospitality sector – which were thriving at the start of last year are now struggling to make ends meet because of a coalescing of factors beyond their control. This supposedly pro-enterprise Government needs to step-up.
“It should reinstate the covid sick pay rebate so smaller firms can recover the cost of supporting those who need to isolate and relaunch the workplace testing initiative – enabling test and release in scenarios where staff are pinged at work.”
Suren Thiru, head of economics at the British Chambers of Commerce, said: “Greater support is immediately needed for those businesses impacted by Plan B, including making additional grant funding available and reverting the VAT for hospitality and tourism back to its emergency rate of 5%.”
海角视频 inflation has hit its highest level for more than a decade as supply chain disruption and record fuel prices have sent the cost of living soaring, new figures show.
Chancellor Rishi Sunak said: “We know how challenging rising inflation can be for families and households, which is why we’re spending £4.2bn to support living standards and provide targeted measures for the most vulnerable over the winter months.
“With a resurgence of the virus, the most important thing we can do to safeguard the economic recovery is for everyone to get boosted now.”
Separate research from the Centre for Economic Performance has found that about half of all firms are struggling to recruit new workers and business confidence is dipping due to a range of factors.