Region's economy needs comprehensive support

COMPANIES FEEL IMPACT OF RESTRICTIONS

- WILLIAM TELFORD

SOUTH West companies are in urgent need of financial support as rising inflation and the Omicron virus wreak havoc, business leaders say.

British Chambers of Commerce South West (BCCSW) said the region’s economy will urgently need a comprehensive support package if Covid-19 restrictions continue amid a “perfect storm” of inflation, rising costs and the effects of the Omicron variant.

The organisation, which represents thousands of firms in the region, said companies are facing unprecedented pressure from inflation, combined with poor cash flow stemming from the threat of the Covid-19 Omicron variant, especially in hospitality and leisure - key sectors in the South West.

The warning is underpinned by the findings of the latest Quarterly Economic Survey by British Chambers of Commerce - the UK’s largest independent survey of business sentiment and a leading indicator of UK GDP growth.