Manufacturing trade body Make UK is calling for an emergency, pre-recess package of business support measures.
The call comes after a Make UK survey showed growth and orders slowing significantly with exports close to a standstill.
Make UK has made recommendations for measures government can introduce now to address rising business costs including the following:
- waive or reduce business rates for the next 12 months
- implement VAT deferrals for larger businesses and waive completely for SMEs
- temporarily freeze the Climate Change Levy
- review the efficacy of the business interruption loan schemes introduced during the pandemic and deploy a successor scheme
- Extend the 130% super-deduction tax break, due to end in March 2023
- make the increase in the Annual Investment Allowance permanent.
Stephen Phipson, chief executive of Make UK, said: 'Whilst industry has recovered strongly over the last year we are clearly heading for very stormy waters in the face of eyewatering costs and a difficult international environment.
'Clearly some of the factors impacting companies are global and cannot be contained by the UK government alone. However, given the rate at which companies are burning through their balance sheets just to survive, it must take immediate measures to help shield companies from the worst impact of escalating costs and help protect jobs.'