Chamber hopes for new Government with focus on business

New chief executive Sarah Moorhouse said: "Right now, firms are focused on getting through the next 12 months.

"In their in trays are the pressures resulting from inflation, the cost-of-living crisis their employees are experiencing, raising interest rates and the escalating costs of doing business.

"They want to start turning their attention to the next two to fives years but, for many, this is impossible due to deferred decisions and stalled policy initiatives resulting from the on-going political instability and its impact on the economy.

"We hope for a speedy resolution and a government focused on helping businesses," she said.

Confederation of British Industry Director General Tony Danker said: “The politics of recent weeks have undermined the confidence of people, businesses, markets and global investors in Britain. That must now come to an end if we are to avoid yet more harm to households and firms.

"Stability is key. The next Prime Minister will need to act to restore confidence from day one.

“They will need to deliver a credible fiscal plan for the medium term as soon as possible, and a plan for the long-term growth of our economy.”

Shevaun Haviland, Director General of the British Chambers of Commerce, said Liz Truss's resignation meant the UK now faces even greater uncertainty, just as it stood on the cusp of a recession.

“It is now vital the Conservative Party speedily comes to a decision on a new leader who can return both political and economic stability.

“The new administration must immediately set out how they plan to deal with soaring energy bills, labour shortages, spiralling inflation and interest rates," she said.

She added that flip-flopping on policies had led to low consumer and business confidence, with four in 10 firms expecting falling profits, as companies have seen little sign of a coherent strategy nor stability in Government decision making.

“The challenges that lay ahead of us are building by the day. Two thirds of firms expect to raise their prices and inflation is the top concern. Interest rates are set to climb further in November and energy bills will now rocket again for many in April.

“This is unsustainable. Government must work with business to address three main issues, to show it recognises the challenges firms face.

“Firstly, they must look again at the energy support package for businesses and communicate quickly how the system will work from April.

“Secondly, they must fix the labour market, without the skilled people to do the jobs businesses need, the economy cannot thrive.

“Thirdly, to grow the economy they must set out a strategy to boost our exports.

“People run businesses and businesses rely on people. The new administration must grasp that the cost of living and cost of doing business crises are two sides of the same coin.

“We still need a clear long-term vision on how it will support firms, and the communities that rely on them, to thrive," said Ms Haviland.