Press & Policy

Reacting to the announcement of the new Prime Minister, Dr Liz Cameron CBE, Chief Executive, Scottish Chambers of Commerce, said:

“We would like to congratulate Liz Truss on becoming the UK’s new Prime Minister.

“Scotland’s business community is united in its calls for immediate action to be taken to support the Scottish & UK economy; urgent measures are needed now to deal with the costs’ emergency.

“Scottish businesses have been telling us of eye-watering increases in their energy bills and that it is near impossible to find new fixed term contracts to buffer against further price hikes. This is simply not sustainable.

“Scottish Chambers of Commerce Network has set out an action plan to support businesses. It is now essential that we see swift movement on our proposals. The plan is not just about ensuring critical support for businesses. It is also about protecting jobs and households, securing livelihoods, and creating a vibrant and prosperous society.”

ENDS

• Action plan with case studies:

1. Temporary cut in VAT bills to 5% to reduce spiralling energy costs for businesses and introduction of an SME energy price cap which has also been backed by Scottish Government.

Case study: Services firm in Aberdeen said:

“We are now faced with a tripling of our electricity costs, our business rates have also gone up, and our materials costs have all gone up, and in some cases doubled. Increases in petrol and diesel are also adversely affecting our business.”

2. Covid-style support by introducing Government Emergency Energy Grant for SMEs for the businesses most at risk from the cost emergency.

Case study: Tourism business in Forth Valley said:

“There has to be some serious reform in the UK if businesses are to survive the next 18 months. The cost of living, fuel costs and inflation are going to have a devastating impact on millions of people in the UK – the leisure and tourism markets have already experiencing severe hardship and I personally I can see the next 12-18months being critical in these industries survival. If there is no radical change these industries will not survive.”

3. Temporarily reverse NICs and put money back into the pockets of businesses and workers.

Case study: Services firm in Edinburgh said:

“Costs pressures are increasing, especially Labour Costs. We are moving to monthly salary reviews to deal with cost of living pressures and retain staff. Energy costs, finance costs and fuel are rising but continue to make up a relatively small proportion of overall costs. Increasing Labour costs are the primary concern.”

4. Immediately review and reform the Shortage Occupation List (SOL) to help fill talent shortages.

Case study: Construction firm in Glasgow said:

“Lack of labour in construction industry; lack of apprentices entering the system are having a huge impact on costs; this on top of substantial material increases has not yet affected projects proceeding but there will be casualties both in progressing projects and construction companies surviving.”