Reeves blasts government for ‘trapping’ economy as 4 in 5 firms report price hikes

New British Chambers of Commerce (BCC) data released today from a survey of over 1,000 businesses has thrown sharp focus on the impact of skills and commodities shortages for UK firms, with spiralling prices in evidence.

Labour’s shadow chancellor Rachel Reeves has responded to the figures via Twitter, saying: “The Conservatives will blame Covid or global problems. The truth is that, despite having years to prep for Brexit, they have no plan to boost skills or jobs for workers in Britain, or to deal with bottlenecks at our borders.

“Instead of taking action, the government are trapping us in a high tax, low growth cycle… They claim they can’t do anything about rising costs but they’ve found time and money to cut the costs for bankers, short haul flights and champagne,” she continued.

When asked if they had seen a change in the price of their goods or services in the past year, 80% of the BCC survey respondents in total reported increases, with 46% reporting significant increases and 34% reporting slight increases. 15% reported no change with only 2% reporting any kind of decrease.

For manufacturers the above question drew an even starker answer – 92% had seen an increase in the price of their good and services.

When asked whether they, or any business in their supply chain, had experienced either increased costs or shortages of a variety of commodities over the past 12 months 52% cited vehicle fuel, 34% shipping containers and 30% utilities such as gas or electricity

Among manufacturers, 50% cited steel, 47% shipping containers, 45% vehicle fuel, 39% paper or cardboard, 38% plastics or rubber, 29% chemicals, 19% semiconductors. Only 2% of manufacturers reported that they had not faced increased costs or shortages from the items listed.

Half (50%) of businesses surveyed reported that either they, or others within their supply chains, had experienced skills shortages in the past 12 months. This figure rose to 75% for larger firms with over 50 employees and was least prevalent among firms employing less than 10 people at 31%.