Policy news

The BCC comment on Policy news

ONS labour market figures for February

“While the furlough scheme is limiting job losses, the rise in unemployment and decline in employment levels are further evidence that coronavirus continues to weaken the UK labour market. “With firms facing a renewed cash crisis amid the current lockdown and the prospect of several more months of diminished demand and revenue before many can fully reopen, substantial job losses maybe inevitable if the support schemes wind down as planned. “Although the government’s roadmap provides a way forward, the lack of clarity over the future path of fiscal support has left a damaging cliff edge for jobs and livelihoods. “It is vital that the government support schemes, including furlough and business rates relief, are extended through the summer and wherever possible throughout 2021 to help protect jobs and power the recovery.”

Suren Thiru, BCC Head of Economics

European Commission data adequacy ruling welcomed

BCC Co-Executive Director Hannah Essex, British Chambers of Commerce Co-Exectutive Direct, commented on the decision by the European Commission to grant the UK data adequacy. “With the free flow of data critical to their operations, businesses will be greatly relieved at the granting of data adequacy which removes a costly cliff edge at a time when many are already struggling due to the pandemic and post-Brexit trading conditions. “However, it should not distract from the need to address the many practical difficulties that are currently stifling trade between us. More needs to be done to fix these problems otherwise many firms may simply give up on doing business with the EU. “This should include pushing back the dates for introducing additional scientific checks on animal and plant goods from April and full customs checks on imports from July, and increasing the support available for businesses who need time to adapt to the new trading conditions.”

Delay to business rates review

Suren Thiru, BCC Head of Economics, commented on the delay to HM Treasury’s Fundamental Review of Business Rates until autumn. “Delivering fundamental change to this longstanding drag anchor on business has become only more pressing in light of Covid-19. “Delay in reforming a broken system will hamper any recovery by exacerbating business cash flow concerns as part of the fixed cost base that firms can do little to push downward. “The delay in the review underscores the need to urgently extend business rates relief for retail, hospitality and leisure and provide rates relief to all firms whose ability to generate revenues are severely impaired by the pandemic.”