Shropshire employers counting the cost of Iran crisis
Shropshire Chamber of Commerce is calling on the Government to deliver urgent support to employers as new data reveals that four in five businesses are impacted by the Iran conflict.
Latest research from the British Chambers of Commerce highlights rising energy bills, shipping disruption and escalating raw material costs as the most widespread pressures facing firms.
Shropshire Chamber is supporting the BCC’s call for the Government to fund renewable levies on business bills, roll out a national business energy advice scheme, strengthen protections against unfair pricing practices, and improve energy storage capacity.
Chief executive Ruth Ross said Shropshire businesses were not asking for handouts – simply for a stable environment in which they can plan, invest and grow.
“Shropshire firms are incredibly resilient, but the cumulative pressure of energy volatility, shipping disruption and rising input costs is becoming a real pressure cooker.
“Many of our manufacturers are already operating on tight margins, and these global shocks are now hitting at exactly the wrong time.”
She added: “We have just completed research for our latest quarterly economic survey, and are hearing from members who are delaying investment decisions, reworking supply chains, or absorbing costs they simply cannot continue to carry.
“The uncertainty around the Strait of Hormuz is particularly concerning for energy-intensive industries. Businesses need clarity, stability and targeted support to navigate the months ahead.”
More than 800 businesses - the majority SMEs - took part in the BCC survey. Over half said they were already directly affected by the unrest in the Middle East, while a further quarter expected to be hit.
Manufacturing emerged as the sector experiencing the most severe strain, with more than two thirds already affected by the crisis, and another 23% braced for further impact.
Shropshire Chamber said this reflected what the team was hearing locally from engineering, food production, automotive supply chain and advanced manufacturing firms.
Energy costs remain a major concern. Three quarters of firms expect their energy bills to rise over the next 12 months, and 43% anticipate increases of more than 20%. Nationally, more than a third say they expect difficulties paying their energy bills in the year ahead.
Local businesses have also reported volatile fuel prices, unpredictable shipping routes and supplier price rises ranging from 3% to 30% with very little notice.
William Bain, head of trade policy at the British Chambers of Commerce, said the impact of the conflict is being felt “the length and breadth of the UK”, warning that higher energy bills, shipping disruption and rising raw material costs are now daily concerns for firms.
“Even if the current ceasefire soon signals the end of the conflict, the economic reverberations will be felt for many months to come. The geopolitical kaleidoscope has been shaken and there’s no quick fix.
“Consumers will be given clarity over their energy costs in the coming days, but for businesses there’s no price cap. While government has provided some relief for high energy users, most UK firms remain vulnerable to the volatile global market.”
