BCC chief urges govt to save UK economy

After Bank of England boss Andrew Bailey said soaring inflation could hit the UK harder than elsewhere, Shevaun Haviland, director-general of the British Chamber of Commerce (BCC), told a conference that time is running out to help the economy grow. She said that the government has "until the Autumn budget to reset, rethink and get their house in order".
 
Rising material costs, supply chain issues and worker shortages are creating a "perfect storm", she told the audience at the BCC's global annual conference.
 
The government said it was supporting firms to "navigate the months ahead". A Treasury spokesperson said the government had "cut taxes for hundreds of thousands of businesses" by increasing the employment allowance and cutting fuel duty.
 
The Treasury said it was supporting British businesses through measures such as bringing in 50% business rates relief for eligible High Street businesses, and freezing an amount it uses to calculate rates which will be "worth £4.6 mn over the next five years" for firms.
 
Recently released figures showed that household finances failed to keep up with inflation in the first three months of the year, marking the first time real disposable income has fallen for four quarters in a row since records began.
 
Businesses are also being hit by higher prices, with fuel and energy prices at unprecedented levels. The cost of living has pushed unions to demand pay rises, leading to some workers going out on strike in recent weeks, with more walkouts planned over the summer.