Chancellor must aid business as prices soar - Chamber

The cost of living soared to a 30-year high last month, spelling out the challenges the chancellor faces in his spring spending statement later today.

And Greater Birmingham Chambers of Commerce (GBCC) warned that Rishi Sunak needs to immediately help business battle this “turbulent period ”.

A surge in fuel, energy and food costs is blamed for the rise of 6.2 per cent in the 12 months to February, the fastest since 1992, according to the Office for National Statistics.

Mr Sunak faces growing calls to offer more support as household budgets are squeezed.

Prices are rising faster than wages and the Bank of England thinks it could hit double figures this year.

There is speculation that Mr Sunak could cut fuel duty, boost benefits and raise the threshold for national insurance when he shares his spending plans at midday today.

In February, gas prices were almost a third higher than a year earlier, and electricity prices were up by nearly a fifth.

Erin Henwood (pictured), policy adviser at the GBCC, said: “Today 's inflation figures will come as little surprise to the Greater Birmingham business community, who have spent the last few months vociferously flagging their concerns regarding the rapidly rising cost of doing business.

“In light of this, a third of firms reported that inflation is more of a concern now than it had been last quarter in our latest Quarterly Business Report.

“As the country grapples a cost-of-living crisis, rising Covid-19 case rates, the highest levels of inflation seen in more than 30 years, and now a war in Europe, fiscal intervention is desperately needed to help businesses manoeuvre this turbulent period.

“As businesses battle with spiralling overheads, the Chancellor needs to use today 's Spring Statement to offer immediate and long-term solutions to alleviate these cost pressures; otherwise, he risks reversing any economic progress made over the past two years and losing the trust of businesses across the country. ”

Register for the Q1 Quarterly Business Report briefing on Investment in Greater Birmingham which features speakers from the 2022 Commonwealth Games and HS2.

Greater Birmingham Chambers of Commerce will share a summary of the Chancellor 's announcements following his delivery of the Spring Statement, and will also produce a full breakdown of what the Spring Statement will mean for businesses in the Greater Birmingham area.