Hampshire Chamber of Commerce urges government to act as inflation fears put pressure on 'struggling' businesses

Hampshire Chamber of Commerce (HCC) is urging politicians to publish fiscal plans to provide a long term forecast.

In a members’ survey, 75 per cent of respondents said inflation was a major concern.

Other causes for concern include energy bills – with 68 per cent of firms highlighting it as an issue – fuel prices (54 per cent), and high interest rates (32 per cent).

Ross McNally, HCC executive chairman, said: ‘The message could not be louder or clearer: businesses in all sectors here in Hampshire and across the country are struggling with inflationary pressures, rising bills and huge economic uncertainty.

‘Our members are amazingly resilient, hard-working and creative, but at this critical period of 40-year-high inflation, soaring energy prices and rising interest rates, they need help.’

Chamber members include companies in sectors such as manufacturing, retail, hospitality, professional services and the creative industries.

The survey was conducted before the announcement of the energy price cap for businesses, chancellor Kwasi Kwarteng’s mini-budget and the volatility of the financial markets.

It broadly correlates with the latest analysis by the British Chambers of Commerce – reflecting the national sentiment of businesses.

Due to mounting costs, 47 per cent of survey respondents feel they are under pressure to increase consumer prices.

With increased overheads, 32 per cent of businesses reported declining cash flow in the last three months, and have put investment in machinery or equipment on hold.

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Mr McNally is calling for more government support to ease business fears, with only 37 per cent of surveyed firms confident of being profitable in the coming months.

The government’s medium term fiscal plan is scheduled to be published on November 23.

He said: ‘We urge the government to set out its long-term economic strategy, including detailed fiscal policies and supply side reforms, as soon as possible.

‘That is the only way we can achieve the level of certainty that will give our members and businesses across the country the essential confidence they need to stabilise, plan, invest and grow once again.’