BUSINESSES are facing an impending crisis as they come under increasing pressure from spiralling costs - from their supply chains and energy supplies to their production and raw material overheads. It looks inevitable that they, in turn, will have to increase prices to offset these costs, further fuelling the current cost-of-living crisis for households.

The Chamber network has warned the Treasury that many firms are in real danger with many shelving investment and expansion plans and some even considering closing their doors completely due to cost pressures.

The British Chambers of Commerce (BCC) has outlined a five-point plan which, if implemented, will help businesses to weather the current conditions and keep price rises under control.

These measures include a temporary energy price cap for small businesses, extending the Chancellor’s energy bills rebate scheme for households to smaller businesses and delaying the planned National Insurance rise by one year.

They also want practical solutions to ease supply and labour shortages which are also driving up prices and a moratorium on all policy measures that would increase business costs.

Without help from the Treasury, many businesses, especially smaller ones, will be faced with a nearly impossible situation that will leave them with little choice but to raise prices.

The Government must take swift action to help businesses stabilise without having to seriously increase their prices, cut jobs or the investment that is so vital to sustaining our economic recovery from Covid.

Unabated, the surging cost pressures produced by the cost-of-doing-business crisis will continue to lead to increased prices and fuel the cost-of-living crisis.