• Real disposable income fell for four quarters in a row for the first time since records began.
• Fuel and energy expenses are also squeezing businesses.
• Businesses face “several obstacles” selling to the EU after Brexit, the British Chambers of Commerce (BCC) has warned.

As enterprises suffer with increasing pricing, the head of a business lobby organisation implored the government to “rescue the economy.”

Shevaun Haviland, BCC director-general, said time is running out to expand the economy.

Andrew Bailey, the Bank of England governor, said rising inflation might strike the UK hard.

The government is helping companies “manage the months ahead.”

Ms Haviland told conference attendees that the government has “till the Autumn budget to reset, reassess, and get their house in order.”

She called rising material costs, supply chain challenges, and labour shortages a “perfect storm.”

A Treasury official said boosting the employment allowance and slashing fuel duty “reduced taxes for hundreds of thousands of businesses.”

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The Treasury claimed it was assisting British businesses by providing 50% business rates relief for qualified High Street businesses and freezing a rate calculation amount worth £4.6m over five years.

In May, UK inflation was 9.1%, the highest in 40 years.

Real disposable income fell for four quarters in a row for the first time since records began, according to new data.

Fuel and energy expenses are also squeezing businesses.

Andrew Bailey, governor of the Bank of England, warned on Wednesday that skyrocketing inflation would impact the UK more than any other major country during the energy crisis.

As a result of the energy price shock and labour shortages, the UK’s economy will certainly weaken earlier than other countries.

Mr. Bailey didn’t rule out raising interest rates by a half-point to combat inflation. 1.25 percent is the highest in 13 years.

“We may have to raise rates,” he said. “Next meeting isn’t set. A month away, but it’s possible.”

Higher raw material costs last summer, supply chain and shipping concerns, problems recruiting workers, and projected energy price rises are “putting the brakes on” the country’s economic recovery from the pandemic, according to the BCC’s Ms. Haviland.

In April, the energy price ceiling, which limits how much suppliers can hike bills, hit a record high of £1,971. The cap will climb by another £800 in October.

The energy price ceiling does not apply to businesses, thus the BCC says they can’t estimate monthly bills.

Ms. Haviland told Chancellor Rishi Sunak at the BCC conference that enterprises face “several obstacles” selling to the EU after Brexit.

Mr. Sunak stated, “Of course, our trading relationship [with the EU] has changed; that was always going to be the case. The government is looking at how we can reduce some of those burdens further, particularly on the Northern Ireland side.”

On Monday, MPs approved new legislation that gives ministers the power to cancel portions of the post-Brexit arrangement. EU says move violates international law.

Mr. Sunak said the government intends to “make our customs procedures world-class.”

The UK economy fell in April, raising concerns about its future.

Some economists worry the UK could enter a recession, characterised as two successive three-month declines.

Cost of living has led unions to demand pay raises, leading to recent strikes and expected summer walkouts.

Last week, RMT Union members walked out in the country’s greatest industrial action since 1989.

Royal Mail and rail workers will strike in July. Heathrow Airport British Airways check-in personnel voted to strike over salary.

Ms. Haviland noted that strikes should be resolved by “cooperation, not conflict” because they affect everyone.

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