New Conservative leader and Prime Minister Liz Truss must act urgently to prevent long-term economic damage, business leaders in the West Midlands said today.
Top of her in tray must be to curb the "rampant" energy costs which are strangling businesses and household budgets while ensuring the region's mayor Andy Street has the support needed to reduce the reliance on fossil fuels and elevate Birmingham's standing will be crucial.
Henrietta Brealey, chief executive of Greater Birmingham Chambers of Commerce, said the most pressing concern for the new Prime Minister was to tackle issues facing businesses and the economy.
She said: "The UK is falling further behind international competitors such as Germany in curbing rampant energy cost increases. Coupled with wider inflationary pressures and labour market shortages, the country is at risk of long-term economic damage if urgent action isn't taken.
"Our business community has proven itself to be remarkably resilient, entrepreneurial and full of further potential to unlock. It drives economic growth and employment opportunities.
"It needs to see urgent short-term measures coupled with long-term vision and strategic decision making to enable its success. We look forward to working with the Government to ensure that local businesses remain at the heart of these conversations."
Stuart Smith, head of the Midlands team at property agency JLL, said businesses in the West Midlands would be hoping Ms Truss' confirmation as PM would signal a return to the priorities set out by the Government in 2019.
"Ensuring Andy Street has the support and funding needed to reduce the region's reliance on fossil fuels and elevating Birmingham's standing internationally will be crucial but it's not the only ask businesses have," he said.
"Companies in the West Midlands now want to build on the success of the recent Commonwealth Games and continue to showcase the region as an attractive place to live and work.
"Only by seeing a significant spending uptick in infrastructure, transport links, education and net zero schemes in the region will firms feel able to recruit and commit to the West Midlands as a base for business in the long term. A new government means a fresh start but action is needed sooner rather than later."
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Jessica Bowles is director of strategy at commercial property Bruntwood which owns and manages buildings such as Mclaren and Cornerblock in Birmingham city centre.
"Liz Truss faces a daunting list of economic crises to tackle," she said.
"Understandably, this was the focus of much of the debate during the leadership race but too little was said about the UK's long-term productivity problem. This urgently needs a new plan and, at its heart, should be knowledge-intensive sectors such as life sciences and tech and the role of places in supporting their growth.
"These are industries where the UK has impressive existing strengths to build on. Critical to unlocking their potential is fast, reliable, modern transport from cities to cities and cities to surrounding towns - backed by investment into promising firms and ideas and a plan to upskill our communities.
"On top of these, we need to continue to devolve power away from the centre. This is not just giving more levers to our metro mayors but bringing government closer to our regions.
"Even after a successive focus on regional rebalancing over the past 12 years the number of civil service jobs has grown in London but declined elsewhere."
Raj Kandola, head of policy at Greater Birmingham Chambers of Commerce, said businesses would be looking for the new Prime Minister to demonstrate decisive leadership at a time of great uncertainty.
"As we set out in our recent policy manifesto, short term fiscal intervention is going to be absolutely crucial as businesses grapple with rocketing price pressures and huge overheads," he said:
"The Prime Minister's proposal to reverse the recent National Insurance increases is a step in the right direction but we would urge the new administration to go much further in helping businesses in the coming weeks. Introducing emergency energy grants for SMEs, extending VAT relief for hospitality firms and continued reform of business rates would offer much-needed relief to businesses facing an uncertain future.
"Ultimately, delivering a strong domestic agenda which enables growth across all parts of our country, accelerates the transition to net zero and tackles longstanding issues related to skills and productivity is going to be crucial for the country's growth trajectory."
Professor Steven McCabe, a political economist and associate at Birmingham City University, has cautioned that a trade war with the EU looms over the UK.
"It's often the first 100 days in office where reviews of competency are first possible, however she's likely to be judged by her performance in the first 100 hours," he said.
"Tackling the energy and living crises will be her first challenge. Beyond easy but divisive solutions such as delivering a price cap, removing the green levy and reopening oil wells in the North Sea, it's difficult to see a way through these crippling price rises for the newly appointed leader.
"An emergency budget meeting and related announcement later this week may see temporary tax cuts implemented in an effort to help many of those struggling to make ends, however this will not bring down inflation on its own. A cabinet reshuffle which pacifies those who supported her while not avoiding being labelled an overtly right-wing government.
"Comparisons to Thatcher - particularly via Truss' mannerisms and policies - will fall short when cabinet reshuffles are concerned. Recognised intellectual heavyweights seem to be in short supply in Whitehall of late, thus Truss' new Government won't be the strongest first team to play out since Theresa May became the first of three unelected Conservative leaders in 2016.
"The spectre of a potential US trade deal with the Biden administration being jeopardised by Truss - upholding her view on the border with the Republic of Ireland - will hang over the new PM.
"Truss will need to be more conciliatory in her tone and in her attitude to sensitive international relations and affairs - a skill one would expect her to have refined during her spell as Foreign Secretary."
Businesses in Coventry and Warwickshire want to see the new Prime Minister take immediate steps to support the economy.
Corin Crane, chief executive of the Coventry and Warwickshire Chamber of Commerce, said the hiatus in Government caused during the leadership race had come at a time when businesses and individuals were facing a major crisis of rising costs that simply could not be sustained.
"We wish Liz Truss every success as the new Prime Minister and she will have to hit the ground running if the country is to get to grips with the issues around energy costs and inflation that are putting huge strain on the economy," he said.
"There is very little time to waste and it's vitally important the economy gets the support it needs to help overcome this crisis. The new PM has an incredible opportunity to act quickly and decisively in appointing a strong cabinet focused on business growth and with some brave, game-changing policies that will address the issues businesses are facing around trade, energy costs and recruitment.
"The West Midlands is the heartbeat of the UK economy and we need a PM that will use business organisations such as Chambers of Commerce to help businesses survive and grow."
Samantha O'Sullivan is policy lead at trade body the Chartered Institute of Payroll Professionals in Shirley which represents almost 10,000 payroll professionals across the UK.
She said the focus for the new cabinet needed to be on providing clarity to businesses and their employees on how they will tackle the cost of living crisis.
"Truss previously pledged to 'start cutting taxes from day one', meaning an immediate budget scrapping the National Insurance hike as well as the planned corporation tax rise," she said.
"Whether 'from day one' is actually feasible or not is up for debate. Payroll is the largest cost for businesses, and many are desperately trying to find ways to further support their staff.
"As an example, our own research recently noted a surge in firms considering offering pay on-demand, easing household cash flow. The coming days will be key to understanding what pledges will be realised, from national insurance to corporation and income tax."
