(Bank of England)

BUSINESS today called for an immediate emergency budget to deal with rising costs, including reversing National Insurance increase.

That came as before Bank of England chief economist Andy Haldane warn that inflationary maybe even 10% higher than predicted and can last for many years.

Haldane, now head of the Upgrade Task Force, said: “Things have surpassed my worst expectations.

Last week, the Bank of England said inflation would hit 10% this year and a recession was an obvious risk.

On inflation, Haldane told LBC: “I think it’s definitely going to last into the year, and into next year or even the year after.”

He called for a rate hike to stave off inflation last June. The bank didn’t move until December.

“If we had done that, we probably wouldn’t be talking about a rate hike as big or as fast as it is now. We have a whole generation of mortgage holders who rarely see interest rates rise. It will be a huge shock to the system not only financially but also psychologically.”

The British Chamber of Commerce said today an emergency budget should be used to cut VAT on energy bills for companies and restore free Covid tests to ease labor shortages. . It is on a reversal in NI rising at least until 2023.

The Scottish Power boss also warned today that customers need major government intervention. Keith Anderson said: “We need to be realistic about the severity of the situation – around 40% of UK households, potentially 10 million homes, could fall into poverty during the off-season. this winter.”

Concerns about the UK economy continue to weigh on the pound. It is $1.30 against dollars just a month ago. Today, it dropped to $1,226 again.

Shevaun Haviland, General Manager of BCC, said:

“These are simple, straightforward measures that can be quickly reversed when the economy is in better shape.

“Treasury and HMRC have demonstrated their ability during a pandemic to make similar changes quickly and efficiently. Making these changes will bring immediate benefits to both businesses and the public.

“No government can control the global factors driving prices up, but we will act where we can to support businesses,” a government spokesman said.

Haviland added: “Governments have many types of financial leverage that they can pull, and now is the time to use them. Taking action today will give businesses the opportunity to generate the profits needed in the future to fill tax coffers. ”

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