The pound has fallen in value by 3.8 per cent while the Ukrainian war reaches its third week.

This is partly an effect of Russia's invasion of Ukraine but is also because of inflation, and a rise in energy bills, according to the Cumbria Chamber of Commerce.

Suzanne Caldwell from the Chamber said: "A fall in the value of sterling increases the cost of foreign goods and services here in Cumbria, and the rest of the UK, resulting in higher inflation.

"On the flip side, it would normally be expected to increase the competitiveness of exports.

"But in the current circumstances that may or may not impact positively on sales given the economic pressures in many other markets. And exports are expected to remain significantly below pre-pandemic levels through to at least the end of 2024.

"Our economy was already suffering from a combination of rising inflation, soaring energy bills and supply chain issues. 

"Russia’s invasion of Ukraine has increased the risk of a recession in the UK by exacerbating the already acute inflationary squeeze on businesses and consumers and derailing the supply of critical commodities to many sectors of the economy.

"Impending higher taxes will be a further drag on activity.

"Among these is a reversal of the hospitality VAT cut, of particular impact here in Cumbria.

"So the UK’s economy, and Cumbria’s with it, is expected to stall.

"Raising interest rates and taxes now or in the coming months would weaken our growth prospects further.

"Interest rate rises are often used to try to reduce inflation, but in the current circumstance, this wouldn’t address inflationary pressures.

"Along with other Chambers of Commerce, we’re urging the Chancellor to use the upcoming Spring Statement to tackle the cost-of-doing-business crisis by delaying the National Insurance rise and committing to no further policy measures that will increase costs for business for the remainder of this Parliament.

"We also need a cast-iron commitment from the government’s Supply Chain Advisory Group and Industry Taskforce that it will continue to work with businesses to urgently deliver practical solutions to ease the supply and labour shortages that are continuing to hamper production and drive the upward pressure on prices."