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 companies struggling with a “perfect storm” of rising energy prices, chronic staff shortages and troubled jobs. “They need to implement business support now,” he told the business group’s annual conference in London. “We are in a limited time. “The government has until the autumn budget to restore, rethink and tidy its house.” The British economy is under severe pressure, with inflation at its highest level since 1982 and Bank of England Governor Andrew Bailey warning that the UK is facing a worse slowdown than many of its global rivals. Already at 9.1% in May, inflation is projected to peak above 11% this fall. Goldman Sachs economists said on Wednesday that the chances of a recession in the UK increased, approaching 50-50. Analysts at the US Investment Bank said: “We believe that a recession is more likely in the UK than in the euro area (40%) and the US (30%), and the risks of a recession are more dangerous in the UK. in the current quarter, possibly in contracting territory “. Sunak, speaking in an interview in Haviland at the BCC’s annual conference, said the government would announce a new round of investment incentives to support companies in the autumn budget. “We know how important business investment will be for our recovery, so we want to ensure that the autumn budget continues to support it,” he said. The chancellor said the government was working on plans to replace the “oversupply” regime, which offers companies relief in their tax bills when they invest in technology and productivity-enhancing assets. “It was temporary and expires next spring. “But what we are committed to doing is finding a more permanent replacement for oversupply, which will continue to provide strong incentives for business investment.” Official figures show that UK households experienced a further drop in real incomes in the first three months of the year, amid a severe squeeze from rising energy costs. Real disposable household income fell 0.2% in the first quarter, according to the latest GDP data from the Office for National Statistics – the fourth consecutive quarterly decline, the worst since records began in 1955. Subscribe to the Business Email daily email or follow the Guardian Business on Twitter at @BusinessDesk Speaking on a visit to Madrid for the NATO summit, Boris Johnson suggested that he wanted to reduce “we do not need” food tariffs to address the cost-of-living crisis by lowering the price of imported goods. He said the government would reconsider its options. International Trade Minister Anne-Marie Trevelyan is working on a list of products on which tariffs could be reduced, the Times reported. However, he used a speech at the BCC conference to warn that “accidental” reductions would have a negative impact and have little benefit for British consumers. “Tariffs are not the only end of trade policy and random reductions are not a permanent solution to economic problems,” he said.
