Reacting to the PM’s resignation, Shevaun Haviland, Director General of the BCC, said:

“Following weeks of chaos and uncertainty, the Prime Minister has resigned. Her resignation means the UK now faces even greater uncertainty, just as it stands on the cusp of a recession.

“It is now vital the Conservative Party speedily comes to a decision on a new leader who can return both political and economic stability.

“The new administration must immediately set out how they plan to deal with soaring energy bills, labour shortages, spiralling inflation and interest rates.

“Flip flopping on policies has led to low consumer and business confidence, with four in 10 firms expecting falling profits, as companies have seen little sign of a coherent strategy nor stability in Government decision making.

“The challenges that lay ahead of us are building by the day. Two thirds of firms expect to raise their prices and inflation is the top concern. Interest rates are set to climb further in November and energy bills will now rocket again for many in April.

“This is unsustainable. Government must work with business to address three main issues, to show it recognises the challenges firms face.

“Firstly, they must look again at the energy support package for businesses and communicate quickly how the system will work from April.

“Secondly, they must fix the labour market, without the skilled people to do the jobs businesses need, the economy cannot thrive.

“Thirdly, to grow the economy they must set out a strategy to boost our exports.

“People run businesses and businesses rely on people. The new administration must grasp that the cost of living and cost of doing business crises are two sides of the same coin.

“We still need a clear long-term vision on how it will support firms, and the communities that rely on them, to thrive.”