Neil Hutcheson, Head of Policy at FSB NI said:
“Nine out of ten SMEs tell us that costs are now at a record high, driven primarily by ballooning prices on fuel, utilities, product inputs, labour shortages and tax increases. A combination of factors has led to current inflation levels, and so it will require a suite of interventions to help fix the issue.”
“We know the task of tackling inflation is a difficult one, but a jump in interest rates will compound the pressure on small businesses, at least in the short term, as increased costs of finance for small businesses are met with a decrease in consumer spend. Whilst this is the stated intention of the Bank of England, it will take time for an isolated measure of this nature to take effect.”
“Therefore, we need to see politicians at Stormont putting themselves in a position to make decisions on the areas for which they hold responsibility, such as energy costs and business rate reliefs.”
“At the same time, the UK Government can assist by reversing the hike in National Insurance, cutting VAT and fuel duty. It is a combination of these fiscal measures that can help limit damage to small businesses.”
“The cost-of-living crisis cannot be solved without solving the cost of doing business crisis – if we must bring down inflation, we must do so using the full range of interventions possible.”
ENDS