London Daily

Focus on the big picture.
Monday, Aug 04, 2025

UK firms tell Rishi Sunak: time running out to save UK plc from perfect storm

UK firms tell Rishi Sunak: time running out to save UK plc from perfect storm

Chancellor urgently needs to support companies facing rising energy prices, chronic staff shortages and supply chain issues
Rishi Sunak has been warned the government is running out of time to save the economy amid a rapidly worsening growth outlook and soaring inflation hitting businesses.

The director general of the British Chambers of Commerce (BCC), Shevaun Haviland, said the chancellor urgently needed to announce a package of financial support for firms struggling with a “perfect storm” of rising energy prices, chronic staff shortages and supply chain problems.

“They need to put in place support for businesses now,” she told the business group’s annual conference in London. “We are on limited time. The government has until the autumn budget to reset, rethink and get their house in order.”

Britain’s economy is coming under severe pressure, with inflation at the highest rate since 1982 and the Bank of England governor, Andrew Bailey, warning the UK was facing a worse slowdown than many of its global rivals. Already at 9.1% in May, inflation is forecast to peak above 11% this autumn.

Economists at Goldman Sachs said on Wednesday the chances of a UK recession had risen, coming closer to 50-50. Analysts at the US investment bank said: “We think a recession is more likely in the UK than in the euro area (40%) and the US (30%), and recession risks are more front-loaded in the UK, with the current quarter likely in contractionary territory.”

Sunak, speaking in an interview with Haviland at the BCC’s annual conference, said the government would announce a fresh round of investment incentives to support companies at the autumn budget. “We know how important business investment will be to our recovery, so we want to make sure that the autumn budget will continue to support that,” he said.

The chancellor said the government was working on plans to replace its “super deduction” scheme, which offers companies relief on their tax bills when they invest in productivity boosting technology and assets. “It was temporary and it expires next spring. But what we’ve committed to doing is finding a more permanent replacement for the super deduction, which will continue to strongly incentivise business investment.”

Official figures show UK households suffered another fall in real incomes in the first three months of the year, amid a severe squeeze from soaring energy costs.

Real household disposable incomes fell by 0.2% in the first quarter, according to the latest GDP data from the Office for National Statistics – the fourth straight quarterly decline, in the worst run since records began in 1955.

Boris Johnson, speaking on a visit to Madrid for the Nato summit, suggested he wanted to cut food tariffs “we don’t need” to address the cost of living crisis by reducing the price of imported goods. He said the government would review its options.

Anne-Marie Trevelyan, the international trade secretary, is working on a list of products where tariffs could be cut, the Times reported. However, she used a speech at the BCC conference to warn that “haphazard” reductions would have a negative impact and do little to benefit British consumers.

“Tariffs are not the be all and end all of trade policy, and haphazard reductions are not a lasting solution to economic problems,” she said.
Newsletter

Related Articles

0:00
0:00
Close
UK's Online Safety Law: A Front for Censorship
Nationwide Protests Erupt in Brazil Demanding Presidential Resignation
Parents Abandon Child at Barcelona Airport Over Passport Issue
Mystery Surrounds Death of Brazilian Woman with iPhones Glued to Her Body
Bus Driver Discovers Toddler Hidden in Suitcase in New Zealand
Switzerland Celebrates 734 Years of Independence Amid Global Changes
U.S. Opens Official Investigation into Former Trump Prosecutor Jack Smith
Leaked audio of Canada's new PM Mark Carney admitting the truth about the Net Zero agenda: "We're gonna make a lot of money off of this."
China Enforces Comprehensive Ban on Cryptocurrency Activities
Absolutely 100% Realistic EVO Series Doll by EXDOLL (Chinese Company) used mainly for carnal purposes
World Economic Forum founder Klaus Schwab: "In this new world, we must accept... total transparency. You have to get used to it. You have to behave accordingly. But if you have nothing to hide, you shouldn't be afraid."
Meet Mufti Hamid Patel, head of Office for Standards in Education in Pakistan
George Soros tells the World Economic Forum: "President Trump is a con man and the ultimate narcissist, who wants the world to revolve around him."
Hamas are STARVING the hostages.
Decline in Tourism in Majorca Amidst Ongoing Anti-Tourism Protests
British Tourist Dies Following Hair Transplant in Turkey, Police Investigate
Poland Begins Excavation at Dziemiany After New Clue to World War II‑Era Nazi Treasure
WhatsApp Users Targeted in New Scam Involving Account Takeovers
Trump Threatens Canada with Tariffs Over Palestinian State Recognition
Trump Deploys Nuclear Submarines After Threats from Former Russian President Medvedev
Trump Sues Murdoch in “Heavyweight Bout”: Lawsuit Over Alleged Epstein Letter Sets Stage for Courtroom Showdown
Germany Enters Fiscal Crisis as Cabinet Approves €174 Billion in New Debt
Trump Administration Finalizes Broad Tariff Increases on Global Trade Partners
J.K. Rowling Limits Public Engagements Citing Safety Fears
JD.com Launches €2.2 Billion Bid for German Electronics Retailer Ceconomy
Azerbaijan Proceeds with Plan to Legalise Casinos on Artificial Islands
Former Judge Charged After Drunk Driving Crash Kills Comedian in Brazil
Jeff Bezos hasn’t paid a dollar in taxes for decades. He makes billions and pays $0 in taxes, LEGALLY
China Increases Use of Exit Bans Amid Rising U.S. Tensions
IMF Upgrades Global Growth Forecast as Weaker Dollar Supports Outlook
Procter & Gamble to Raise U.S. Prices to Offset One‑Billion‑Dollar Tariff Cost
House Republicans Move to Defund OECD Over Global Tax Dispute
Botswana Seeks Controlling Stake in De Beers as Anglo American Prepares Exit
Trump Administration Proposes Repeal of Obama‑Era Endangerment Finding, Dismantling Regulatory Basis for CO₂ Emissions Limits
France Opens Criminal Investigation into X Over Algorithm Manipulation Allegations
A family has been arrested in the UK for displaying the British flag
Mel Gibson refuses to work with Robert De Niro, saying, "Keep that woke clown away from me."
Trump Steamrolls EU in Landmark Trade Win: US–EU Trade Deal Imposes 15% Tariff on European Imports
ChatGPT CEO Sam Altman says people share personal info with ChatGPT but don’t know chats can be used as court evidence in legal cases.
The British propaganda channel BBC News lies again.
Deputy attorney general's second day of meeting with Ghislaine Maxwell has concluded
Controversial March in Switzerland Features Men Dressed in Nazi Uniforms
Politics is a good business: Barack Obama’s Reported Net Worth Growth, 1990–2025
Thai Civilian Death Toll Rises to 12 in Cambodian Cross-Border Attacks
TSUNAMI: Trump Just Crossed the Rubicon—And There’s No Turning Back
Over 120 Criminal Cases Dismissed in Boston Amid Public Defender Shortage
UN's Top Court Declares Environmental Protection a Legal Obligation Under International Law
"Crazy Thing": OpenAI's Sam Altman Warns Of AI Voice Fraud Crisis In Banking
The Podcaster Who Accidentally Revealed He Earns Over $10 Million a Year
Trump Announces $550 Billion Japanese Investment and New Trade Agreements with Indonesia and the Philippines
×