On reported proposals to temporarily cut VAT, Dr Liz Cameron CBE, Chief Executive of the Scottish Chambers of Commerce, said:

“At our recent meeting with the Chief Secretary to the Treasury, we called for bold and immediate action to provide businesses with urgent support.

“The reported plans to temporarily cut VAT would be a helpful start if this is formally announced by the UK Government. 

“However, this does not go far enough to mitigate the challenges that businesses face.

“The government must go further and introduce an SME energy price cap and cut VAT on business energy bills from 20% to 5%.

“Time is running out before we start to see businesses go under without this vital support.”