A leading figure in Cumbria's business community has called on the Government to seize its "one chance to jump-start the economy" ahead of the Chancellor's "mini Budget" today.

Rob Johnston, chief executive of the Cumbria Chamber of Commerce, said that the coming few weeks will present the Government with its chance to "jump-start" the economy, but that the Government "must take" this opportunity.

Today's "Summer statement" from Chancellor Rishi Sunak will include details of the Government's upcoming spending plans to help the country back on its feet following a punishing second quarter, caused by the coronavirus lockdown.

The scale of this impact, Mr Johnston said, was captured in the most recent British Chambers of Commerce Quarterly Economic Survey, in which the health of business community across the country is measured.

It showed that in the second quarter of 2020, UK economic conditions deteriorated at an unprecedented rate, with many of its figures indicating the worst performance in the survey's 31-year history.

Mr Johnston said that unfortunately, given the recent findings uncovered by the Cumbria chamber, the national picture came as "no surprise.

“Even so, it’s chastening to see the vast majority of indicators drop to historic lows with declines far exceeding those seen at the height of the global financial crisis," he said.

“The services sector suffered particularly badly with consumer-facing firms acutely exposed to economic headwinds from the pandemic."

Mr Johnston pointed out that nationally, the manufacturing sector has had an extremely difficult time, which is always of a concern to Cumbria given the important role it plays in the county.

“Manufacturing had a dismal three months with collapsing demand and major disruption to supply chains weighing on the sector," he said.

"The unprecedented slump in business cashflow is a key concern as it severely hampers business activity and staff retention.”

Mr Johnston stressed that now lockdown is easing, the third quarter is likely to be more positive.

"However, the collapse in forward-looking indicators of activity suggests that, unless action is taken by government to stimulate demand, the prospect of a swift and sustained recovery may prove too optimistic," he said.

“The Government has one chance to jump-start the economy and business confidence over the coming weeks – and they must take it."

The British Chambers of Commerce has set out measures that it says businesses need from the Chancellor’s economic statement due later this month.

These include:

- Supporting jobs through substantial reductions in Employer National Insurance Contributions;

- Supporting cash flow through wider business rate reliefs and extended loan and grant schemes;

- Supporting young people through wage subsidies for apprenticeships and work experience;

- Supporting investment in productivity, people and carbon reduction through major incentives;

- Stimulating demand, e.g. via targeted ‘restart vouchers’ for all UK households or a temporary VAT cut;

- Streamlining regulatory processes to make life easier for businesses without compromising safety or the environment.