Moray Chamber warns that businesses will disappear without "smart, sensible support"
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MORAY Chamber of Commerce has written a letter to local politicians and groups warning that rising costs could lead to further business closures.
In a letter addressed to Moray's SNP MSP Richard Lochhead, Conservative MP Douglas Ross and Moray Council – the Chamber warned that, without sensible support, businesses will disappear.
The letter comes after the Chamber met with 15 hospitality representatives from around Moray.
"That conversation was terrifying," Sarah Medcraf, the Chamber's chief executive said, speaking after the meeting.
"The walls are closing in for all businesses and if we don't get smart, sensible support for the cost of doing business, there won't be any businesses left."
The 635-word letter, shortened here, reads: "During the pandemic, businesses did everything in their power to comply with legislation and guidance, spending millions in the process, to prevent transmission of the virus.
"Between lockdowns and restrictions to trading, many believed they were in the toughest trading conditions that they’d ever witnessed.
"However, following the pandemic – the war on Ukraine, the impacts of Brexit, inflation, and the energy crisis, businesses are now at breaking point.
"If there is no profit, there is no capital investment in products. Trading conditions have never been so tough because businesses are feeling the pressure from all angles and believe they have nowhere to go.
"To allow for business survival and local economic growth it is imperative that support is given urgently.
"Legislations and policy need to change to enable the leaders of the business community to plan, invest, create jobs, and contribute towards a positive Moray, Scotland, and United Kingdom.
"The hospitality industry is on its knees from lack of available staff, rising costs from everything from energy to food to coffee and it needs support now.
"A reduction in VAT for the hospitality and leisure sector must be a priority, especially when consumers are spending less due their own cost of living crisis.
"There is strong frustration about the headlines of record profits for energy companies when some businesses are seeing an increase of almost 400 per cent on their energy bills.
"Hoteliers are making the decision now whether they close for winter because it may be cheaper to do so.
"As the winter comes in we will find that people will go out for coffee to save putting the heating on at home, as businesses will need to heat their premises.
"However, we have already had reports from the hospitality industry of the average order value falling, with people opting to share meals etcetera.
"A large cost for businesses is non-domestic rates. This main tax on business is an unfair, outdated system needs to be reformed. Not addressing the issues will lead to longer systemic problems.
"The costs are heavily influencing business actions, and the cliff edge of the small business bonus scheme is preventing investment and expansion.
"The combination of the above linked with rising prices in raw materials, food, and labour is a storm that many businesses cannot weather.
"While we understand some of the issues fall with the UK Government and some are devolved to Scottish Government, we want to be clear that we believe unity and collaboration of both governments, along with an understanding of the reality of the business challenges, will be the only way to turn this around for the business community to enable them to prosper."
