North East business leaders call on Liz Truss to act quickly to avert crisis

One regional business leader says companies are facing a crisis "every bit as severe as that presented by Covid"

New Conservative Party leader and incoming prime minister Liz Truss arrives at party headquarters. (Photo by Carl Court/Getty Images) (Image: Getty Images)

Business groups have told next Prime Minister Liz Truss that she needs to act quickly to avert a crisis that could be “every bit as severe as that presented by Covid.”

Ms Truss’ victory in the Conservative leadership election will see her become PM at a time of soaring inflation and energy costs that many businesses say they cannot afford to pay. She has said she will announce a package on energy bills within a week, but business leaders have lined up to call for swift action on the costs facing both companies and their customers.

Stephen Patterson, chief executive of Newcastle city centre business group NE1 Ltd, said: “The new Prime Minister and her cabinet need to hit the ground running to deliver a radical package of support to tackle the cost-of-living crisis for people and businesses. Swift, bold, and decisive action is needed now, without delay, to avert a crisis that, if not addressed, could leave many hundreds of thousands of people without jobs. Leaving many families not just with concerns about how the pay the fuel bills, but how they pay any bills.

“Make no mistake, the crisis facing business is every bit as severe as that presented by Covid. Businesses are planning for the winter now and they need reassurance, clarity, and solutions from Government immediately. As such, we call on the Prime Minister and her cabinet to work with BIDs and business on solutions to the collective challenges we face. Our new Government cannot afford to dither and fumble this ball at such an important time.”

John McCabe, chief executive of the North East of England Chamber of Commerce said: “We would like to congratulate Liz Truss on running a successful campaign to become the ��Ƶ’s new Prime Minister. Her appointment must mark the start of real action to deal with the significant economic pressures facing businesses and households in the North East.

“At the start of her campaign, we urged Ms Truss to look at the cost of living and the cost of doing business as two sides of the same coin. The need for investment in skills, transport and public services has not gone away, all of which can be delivered through devolution and more action on Levelling Up.

“But unsustainable energy price rises and bills, combined with staff shortages and inflationary pressures are putting the gains made by North East business at risk as they recover from the pandemic. On behalf of our members, we invite Ms Truss and her new team to work with us to maintain business and consumer confidence, and protect the most vulnerable in our communities.”

After being announced as the new party leader, Ms Truss promised supporters a “bold plan” to cut taxes and deal with the energy crisis. She has previously outlined plans to scrap former Chancellor Rishi Sunak’s proposed corporation tax and implement other tax reductions for firms.

Earlier on Monday, the latest monthly S&P Global/CIPS ��Ƶ services PMI survey suggested a worse-than-expected performance by country’s service sector last month. Firms reported the slowest pace of growth for a year and a half as the rising cost-of-living weighed on customers.

Martin McTague, the North-East based chair of the Federation of Small Businesses, said: “I congratulate Liz Truss and her team on a campaign that included small businesses, the self-employed and unleashing enterprise at its centre. 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.

“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.

“Small businesses are crying out for a comprehensive response which cuts taxes, limits spiralling bills, and provides direct cash support for the smallest businesses. 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 ��Ƶ’s 5.5m small businesses and the 16m jobs within them, in communities in all parts of the ��Ƶ.”

READ NEXT: