FALLING gas prices are “one ray of hope” for businesses bracing for an increase in costs after April, according to a leading economist.
Vicky Pryce, chief economic adviser at the Centre for Economic and Business Research, looked ahead to the Chancellor’s Spring Budget, as businesses call for more support.
She told GB News: “There has been some move on business rates and and that’s been quite helpful but of course you do need and, I think what the chambers of commerce are asking for, is a complete review of the business rates regime, which is inconveniencing and in fact, adding to huge costs for businesses.
“For start-ups, they are a big deterrent, right now.
Speaking to Bev Turner, she said: “We know the Government is also trying to get the over 50s back to work, so there is a lot that needs to be done.
“If you look at investment issues, again, there’s huge demand by all organisations to do something more there and make the various regimes that now exist to help investment a bit more permanent.
“There’s a lot of uncertainty around energy support…particularly pubs and restaurants, I would say the verdict is that they have been let down to a very considerable extent.”
On energy bills, Ms Pryce added: “The regime that was there before there was really putting a sort of cap on what it is that the businesses would be paying, has now been moved to just giving you a discount per unit of energy that you use, that is a lot less generous than was the case before.
“So, as of April, the cost to businesses will increase. The one ray of hope is that prices have been falling, gas prices in Europe have come down very significantly.
“In fact, on some counts, if you look particularly at what is being brought forward, if you like for the summer, we’ve gone back to where we were pre the invasion of Ukraine by Russia. So that’s good news.
“The negative thing is that we’ve seen oil prices beginning to show some signs of going up because China has come back into the market.
“Also, there are now blockages of oil coming from Russia by the West and Russia itself has cut production so there are some elements there that will be going up.
