Hampshire Chamber of Commerce leader calls for 'immediate action' from the government over spiking inflation

Commenting on the announcement that the UK inflation rate is set to be at its highest for 40 years with a rate of nine per cent predicted this year, Hampshire Chamber Chief Executive and Executive Chairman Ross McNally said inflation is a ‘major concern’ across all sectors.

He said: ‘Inflation reduces businesses’ ability to invest, operate at full capacity and accommodate wage growth. We are in a period where the costs of doing business appear to be rising every month, due to higher energy bills and supply chain impacts. In the hospitality sector, the reversal last month of the VAT reduction introduced to mitigate the impact of the pandemic will have a particular knock-on effect from now.’

The government has announced it is looking to cut taxes for businesses to encourage them to invest.

But the Hampshire commerce chamber leader is calling on the government to take ‘immediate action’ to address the squeeze on firms.

He said: ‘Even if measures were only until the next financial year, it would alleviate some of the most acute uncertainty our members and businesses across the country are facing. Intervention now should be designed to encourage investment and growth and underpin long-term strategy to drive productivity across all sectors. Sustainable business activity is the only way the UK will continue to ensure economic stability and revenues for the public purse.”