‘Sticking-plaster measures’: Sunak fails to ease pain of surging costs, say firms

theguardian.com:

The spring statement did not deliver much to help Lesters, a small but growing packaging company struggling with rising costs.

The Staffordshire based firm’s energy bills will rise from £7,000 per month to £18,000 when the current contract runs out. Speaking after Rishi Sunak’s spring statement, Lesters’ managing director, Billy Hutchinson, said the chancellor had offered nothing to help on this key issue.

“For us the assistance that is needed has not been addressed,” he said. The fuel duty reduction helps but “doesn’t really scratch the surface”, he added.

The chancellor’s statement was met with a chorus of criticisms from businesses and lobby groups complaining that Sunak had done little to alleviate levels of cost inflation steeper than anything faced by British businesses since the 1990s.

“The chancellor put forward sticking-plaster measures that will do little to stem the pain of the rising cost of living,” said John Dickie, chief executive of the lobby group London First.

Car makers, the food and drinks industry, the chemicals sector and manufacturers said the government could have done more.

“The lack of action on energy costs for business is especially hard to fathom,” said Stephen Phipson, chief executive of Make UK, a lobby group representing manufacturers.

“Government cannot escape the fact that manufacturers are facing eye-watering cost increases that are pushing many towards a tipping point, and companies would have been looking for substantial business support measures to help alleviate these.”

Pubs bosses said the failure to extend a cut in VAT to 12.5% for hospitality meant landlords faced more hardship just when they were looking to recover from the financial damage from the coronavirus pandemic lockdowns.

Liz