21 Oct 2022
Business groups have reacted to Prime Minister Liz Truss's resignation on 20 October.
The Confederation of British Industry (CBI) said that the recent few weeks have 'undermined the confidence of people, businesses and markets in Britain'. Tony Danker, Director General of the CBI, commented: 'Stability is key. The next Prime Minister will need to act to restore confidence from day one.
'They will need to deliver a credible fiscal plan for the medium term as soon as possible, and a plan for the long-term growth of our economy.'
Meanwhile, the Federation of Small Businesses (FSB) has called on the government to 'show it can provide stability and take the necessary steps to secure economic growth in the face of significant recessionary pressures'. Martin McTague, National Chair of the FSB, said: 'Businesses are crying out for an end to the political turmoil and a focus on remedying the economy, supporting small firms through the hard winter ahead.
'Whoever becomes Prime Minister must knuckle down, see through the delivery of the energy support package for small businesses – as already approved by Parliament – and the reversal of the hike in national insurance.'
The British Chambers of Commerce (BCC) warned that the UK now faces 'even greater uncertainty, just as it stands on the cusp of a recession'. Shevaun Haviland, Director General of the BCC, stated: 'Flip flopping on policies has led to low consumer and business confidence, with four in ten firms expecting falling profits as companies have seen little sign of a coherent strategy nor stability in government decision making.
'The challenges that lie ahead of us are building by the day. Two thirds of firms expect to raise their prices and inflation is the top concern. Interest rates are set to climb further in November and energy bills will now rocket again for many in April.'