Labour has called on the Government to rethink its plan to
hit businesses with a national insurance rise at the worst
possible time, after damning new data revealed the scale of the
challenges facing British businesses.
Figures from the Office for National Statistics (ONS) released
today show that nearly three-quarters (72%) of businesses
reported they had experienced a challenge while importing in the
last month.
After almost two years of disrupted trade, businesses are also
struggling with rising debt, with one in nine businesses spending
more than a fifth of their earnings to cover repayments.
These issues are compounded by spiralling inflation, energy price
increases, workforce shortages and fluctuating consumer
confidence, all hitting businesses hard.
The British Chamber of Commerce recently warned that businesses
are facing 'unprecedented cost pressures', with inflation
predicted to surge beyond 7% this Spring.
For the first time on record, more than 100,000 business deaths
were recorded in the last four quarters. Yet the Government is
persisting with its plan to raise national insurance at the
beginning of April, piling more cost pressure onto businesses
that are at risk of failure.
, Labour’s Shadow Minister
for Business and Consumers, said:
“These figures highlight how the Conservatives are failing
businesses.
“The supply chain crisis means many are struggling to procure
critical products at a time they are facing rising prices and
workforce shortages.
“The Tories’ solution to the challenges facing businesses is to
saddle them with a tax rise in April.
“Labour would offer security and prosperity to businesses and we
wouldn’t be hitting them with this tax hike at the worst possible
time.”
ENDS
Notes to editors:
- ONS Business Insights and Impact on UK Economy: Business insights and
impact on the UK economy - Office for National Statistics
(ons.gov.uk)
- Number of Business Deaths over the last 4 recorded quarters:
Q1 2021- 111,145 Q2 2021- 105,455 Q3 2021- 100,835 Q4 2021-
102,700 Business births, deaths
and survival rates - Office for National Statistics
(ons.gov.uk)
- BCC warning on cost pressure facing businesses: Businesses warn of
'unprecedented' cost pressures as inflation fears grow |
Business News | Sky News
