Hampshire Chamber of Commerce urge government to act as inflation fears mount
The Hampshire Chamber of Commerce is pressing the government to publish its budgetary plans sooner rather than later after a member poll revealed fresh concerns about inflation and eroding business confidence.
Their pleas come after the Chamber’s latest quarterly research into business sentiment in the area uncovered some rather major worries, including:
- More than half of those polled (54%) are concerned about rising petrol prices, with a third (32%) concerned about the impact of interest rate hikes.
- Six out of ten businesses (59%) are now working below capacity due to a variety of circumstances, including difficulty in obtaining suitable labour.
- Rising inflation is cited as a key issue by three out of four respondents (75%), while energy expenses are mentioned by nearly seven out of 10 (68%).
- Because of rising raw material costs, over half of respondents (47%) believe they are under pressure to raise their prices.
- One third (32%) questioned reported falling cashflow in the last three months, with the same proportion abandoning plans to invest in new plant, machinery or other necessary equipment.
- Almost four out of ten (37%) are less confident in reaching profitability in the next months.
Manufacturing, retail, hospitality, professional services and the creative industries all replied to the study.
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Ross McNally is Hampshire Chamber of Commerce’s Chief Executive and its Executive Chairman. He said this about the results:
“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. While we welcomed the energy support package for business and some aspects of the mini-budget, such as the scrapping of the planned rise in National Insurance, far more needs to be done."
“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.”
Picture courtesy of Hampshire Chamber of Commerce
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