Friday 17 June 2022
Richard Burge, Chief Executive of London Chamber of Commerce and Industry (LCCI), said:
“The Bank of England’s decision to raise interest rates to 1.25%, will add to an already challenging environment for businesses. With the cost of doing business at an all-time high, businesses – especially in London – are at risk of being overwhelmed through a combination of spiralling energy prices, high rent and tax, crippling workforce shortages and supply chain issues. We understand that this move is designed to bring down inflation, however, it comes at a time where the Government are already squeezing businesses with corporation tax and National Insurance rises.
“The UK is set to be the worst performing economy in the G20 over the next year. Higher taxes, and now higher borrowing costs, risk endangering the UK’s faltering post-COVID recovery. We need decisive action from the Government which will support businesses. In this climate, we must see a reversal to National Insurance rises and ensure there is action in protecting businesses from the two-pronged threat of higher inflation and higher tax. Without clinical precision in policy by the government, this latest interest rate rise will heap further pressure on hard pressed small businesses who are the lifeblood of London’s economy.”