Fears effects of Iran war will devastate businesses

Small businesses have met in Ashford, Kent, to urge the Chancellor Rachel Reeves to do more to support them as there are fears the cost of the war in Iran will affect their futures.

The Kent Business Alliance, in its open letter to the Treasury, is calling for the chancellor to offer "targeted support", such as help with fuel and energy costs.

Dr Tim Aker, founder of the Kent Business Alliance, said without government intervention, "businesses won't be able to plan because of the Hokey-Cokey in the Middle East".

A government spokesperson says: "Businesses are paying more because of the war in the Middle East. This is not our war and that is why we did not join it."

They say the government is determined to keep costs down.

"We have extended the 5p fuel duty cut twice until September and will continue to monitor the situation.

"The chancellor has made it clear - contingency planning is taking place for every eventuality, so we can keep costs down for everyone and provide support for those who need it most.

"The government will also take the necessary decisions to help families with the cost of living and protect the public finances."

The chancellor had said a "rapid de-escalation in the Middle East remained the best way to keep pump prices low", the spokesperson added.

Aker said if the war carried on, without government help "businesses would collapse".

"That would ruin local economies and drive up unemployment," he said.

Mihai Macovei, who owns Valerie's wine bar in Ashford, said: "People used to visit town for cocktails, but now they haven't got money to spend in bars like mine."

He says regular customers are only coming "once a month".

Macovei says he is concerned that with the reduced number of customers and higher energy bills, it could "devastate his business".

Shweta Maulayah, the chief executive of Maucare Services in Gravesend, told BBC Radio Kent that rising fuel prices were making it more difficult for her team of carers to travel to rural areas to support clients.

"If vulnerable people aren't getting supported, they could end up on the NHS waiting list or local authorities' care, and this puts more pressure on them," she said.

Alin Badea, chief executive of Royal Cars, a taxi firm in Tunbridge Wells, said its drivers were having to pay an extra £300 a month for petrol.

"We are having to increase taxi fares, and we try to be as reasonable as possible," he added.

"Customers understand the situation, but if this keeps going, we can't sustain the businesses."

Badea said the firm has seen a 20% drop in business.

Tudor Price, chief executive of Kent Chamber of Commerce, said: "If the government wanted to see a growth in our economy, an intervention is required.

"This could be temporary relief of business rates, reduction of fuel VAT or rolling back national insurance costs."

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