Suffolk bosses have called for more help as "modest" government plans to help businesses through the cost-of-living crisis have been revealed.

Current chancellor of the exchequer Nadhim Zahawi is drawing up plans for a multibillion-pound package of tax cuts to help businesses facing bankruptcy due to rising energy costs.

According to The Times, Mr Zahawi said the government could learn "the lesson from Covid" and introduce targeted reductions in VAT and business rates to help the retail and hospitality sectors.

However, any plans for future strategy are uncertain with a new prime minister set to be announced on Monday, September 5.

It is unclear as to how long Mr Zahawi will remain chancellor with either Rishi Sunak or Liz Truss set to announce their own ministerial cabinet after the result.

Paul Simon, head of public affairs and strategic communication at Suffolk Chamber of Commerce, has labelled the proposed plans "modest" and said "there’s no guarantee that even these proposals will find favour with the new administration".

Last week, the chamber backed a five-point plan set out by the British Chambers of Commerce (BCC) which called for:

1. Ofgem to be given more power to strengthen regulation of the energy market for businesses.

2. Temporary cut in VAT to 5% to reduce energy costs for businesses.

3. Covid-style support by introducing Government Emergency Energy Grant for SMEs.

4. Temporarily reverse employer National Insurance increases and put money back into the pockets of businesses and workers.

5. Government to immediately review and reform the Shortage Occupation List (SOL) to help bring down wage pressures and fill staffing vacancies.

Suffolk Chamber's chief executive John Dugmore, said these measures were essential for key Suffolk sectors such as the land-based economy, hospitality and health and social care.

Mr Dugmore said: "The regulation of the energy sector for businesses must be strengthened.

"Businesses also need to receive support for spiralling costs through grant funding and a reduction in VAT on energy bills, along with measures to boost growth such as a temporary reversal of National Insurance Contributions and an urgent reform of the SOL to fill staff vacancies."

Mr Simon added: "Suffolk Chamber, which is in constant contact with local businesses struggling, is repeating its call for a far more ambitious package of measures in any emergency budget aimed at lessening the blows to businesses caused by runaway inflation and labour shortages”