Trade bodies call for 'clarity and stability' after government U-turns on economic strategy

The Independent Publishers Guild (IPG) and Booksellers Association (BA) are calling for clear advice from the government for small businesses, following new chancellor Jeremy Hunt’s U-turn on the UK’s economic strategy. 

In the House of Commons on 17th October Hunt, who succeeded former chancellor Kwasi Kwarteng last week, announced new policies which include scrapping the energy price freeze and the majority of the tax cuts announced just weeks before. 

Meryl Halls, m.d. at the BA, is concerned the disruption and soaring cost of living is putting independent booksellers at even greater risk, but is hopeful the new strategy could reform business rates. “We hope the new chancellor’s changes to the budget will reduce the significant levels of uncertainty faced by British businesses," she told The Bookseller. "Bookshops of all sizes need economic policies that provide stability and offer a framework for sustainable growth. This is incredibly important at a time when households and businesses alike face such testing economic headwinds.

“We would like to encourage the new chancellor to also look at bringing forward support that makes it easier for businesses to invest in sustainable energy and tackle other longer-term barriers to the recovery of the high street – such as proper reform of business rates.”

Bridget Shine, chief executive officer of the IPG, said business owners are growing increasingly frustrated by the back and forth on spending cuts in a time of soaring costs.

"Any benefits from the mini-budget, like the cuts in income and corporation tax and the two-year cap on energy bills, have proved very short-lived," she said. "Businesses and individuals are essentially back to where they were before the chancellor’s intervention—and after the disruption and confusion of the last couple of weeks the UK economy has gone back even further.

"The cuts in spending that the new chancellor hinted at are also frustrating for the publishers that serve education and public institutions so well. What we need more than ever from the government is some stability and clarity on support for small and medium-sized enterprises and consumers to mitigate their soaring costs so they can plan beyond this turmoil."