THE NEW Prime Minister must roll-out a support package on a similar scale to the CV19 pandemic to ease what is being described as an extraordinary crisis facing businesses.
Aberdeen & Grampian Chamber of Commerce has written to Downing Street requesting urgent action to stop rising costs and rocketing energy bills from placing intolerable pressure on the region’s businesses.
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One Chamber member – Donald Russell of Inverurie – has been told its annual electricity and food packaging bills will rise to over £1.5million.
The butchery firm is being hit by a double whammy of rising costs, with news that the dry ice it needs to ship its produce around the UK and Europe has become 900% more expensive overnight.
Last night the firm’s chief executive, Ken Clow, urged government to “stand shoulder-to-shoulder with business” in its hour of need.
“Costs are spiralling dangerously out of control and things are only going to get worse,” he said.
“In the past week, we have been told that our bill for dry ice, which is derived from C02, will rise to £100,000 per week, a rise of 900%.”
“And with the continuing instability and volatility within the energy markets, we are facing further significant uplifts in electricity and gas costs to the business from October onwards.”
“This situation has rapidly become critical and tangible action is needed now to avert a catastrophe for food businesses.”
AGCC and other Chambers across the UK have requested C19-style support, including emergency grants, to be rolled out at pace.
Russell Borthwick, Chief Executive at Aberdeen & Grampian Chamber of Commerce, said: “This is a crisis on a similar scale to the CV19 pandemic – and we believe the response from government needs to at least match what happened in the summer of 2020 – and may need to go further.”
“This situation has been getting worse day-by-day and the new Prime Minister needs to make up for lost time this week by announcing immediate action and aid.”
“The alternative is perfectly viable businesses going to the wall, which will further fuel the economic crisis we see escalating day-by-day.”
The Chamber network has also been urging government to temporarily reverse NICs and put money back into the pockets of businesses and workers.
It has also requested immediate review and reform the Shortage Occupation List (SOL) to help bring down wage pressures and fill staffing vacancies.
Mr Clow has warned that corporate tax relief and VAT reductions mooted during the recent Conservative leadership campaign will not go far enough ease the current situation.
He added: “Right now, the biggest assistance would be through subsidised electricity and gas cost at unit (kWh) rates.”
“This would bring instant benefits to many businesses and would make a real difference to us surviving the storm.”
