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海角视频 economy shrinks: Companies slam government and call for 'drastic action'

Businesses have warned the situation is worse now for many firms than it was during the pandemic

The economy contracted by 0.6% in June due to the extra bank holiday for the Queen's Platinum Jubilee(Image: Getty Images)

West Country businesses are urging the government for more support as the 海角视频's economic situation continues to worsen. The economy shrank in the second quarter of the year as spending on test and trace and the Covid-19 vaccine programme subsided, new figures show.

Gross domestic product (GDP) - the measure of economic activity - fell by 0.1% between April and June, the Office for National Statistics (ONS) said. The economy also contracted by 0.6% in June due to the extra bank holiday for the Queen's Platinum Jubilee.

The Bank of England has already hiked interest rates to 1.75% and is expecting the 海角视频 to fall into recession towards the end of this year. Many business, particularly smaller firms, have called on the government to do more amid soaring inflation, which hit a record high of 9.4% in June.

Ed Rimmer, chief executive of Bath-based SME finance provider Time Finance, said companies were "locked in a vicious cycle" - and warned many could collapse if nothing was done to help them. "One in ten businesses now say they are struggling to keep up with their current financial responsibilities," he said.

"Unless something is done quickly, these businesses won’t survive. Employers are under a lot of pressure right now. Many simply aren't able to raise their prices to keep up with the rising cost of living and, as a result, we're locked in a vicious cycle. Drastic action is required.”

Ollie Hayes, a former professional rugby player and founder of So Fit Bath, has also criticised the government over its response to the economic situation.

“While our economy contracts, and small businesses in all sectors are being pummelled, a political pantomime plays out in Westminster," he said. "For millions of small firms, it’s more brutal now than it was during the pandemic but policymakers and the people running this country don't appear to have any urgency. The whole lot of them should be red-carded."

Dave Kelly, co-founder of Bristol-based butcher Ruby & White, said the business community needed action "now".