Following on from the release of British Chambers of Commerce (BCC) research which reveals how low business confidence has fallen at the start of 2023, Chambers are calling on the Chancellor to use his Spring Budget to relieve cost and recruitment pressures on business.
Key findings from the firms surveyed in the research are that 65% plan to raise prices due to cost pressures; almost half (47%) say paying energy bills will be difficult when the current business support package ends; more than half (52%) are consistently experiencing difficulties recruiting staff and concerns around regulation and taxation are regularly troubling a third of firms (30%).
The survey backs up findings from the BCC’s most recent quarterly economic survey of more than 5,000 companies (over 150 being from Staffordshire) which found business confidence remains at Covid-crisis levels.
It found that only 34% of businesses believed their profits will increase over the coming year, whilst 36% expected a decline. A quarter of firms reported a decrease in sales in the last quarter of 2022, with hospitality firms the least likely to report improvements.
This snapshot of the state of play for business at the start of 2023 sets out exactly why the Chancellor must act in his budget to fuel investment in the UK.
We know we have a tough year ahead. With costs piling up on their doorsteps and so much uncertainty on Government policies, there is currently little incentive for firms to risk either their dwindling cash reserves or fresh loans on new projects.
The UK’s finances are tight, but the Chancellor needs to show more faith in the ability and talent of our businesses.
The BCC has set out four key areas where the Chancellor must act in the budget if businesses are to make headway in bolstering the economy in 2023.
- Unlocking talent and easing pressure in the labour market by making childcare more affordable for cash-strapped parents and guardians
- Boosting the UK’s start-ups by further reforming the business rates system to remove the upfront financial squeeze they face
- Setting a framework for Solvency II investment that helps direct funds to SMEs where they can have the most impact, leveraging the opportunities of green innovation
- Funding to help businesses become greener and more energy efficient
If you have any issues and concerns around any of the points above, please get in touch with Declan Riddell at the Chambers: declan.riddell@staffordshirechambers.co.uk
All this week in our Daily Focus we have been highlighting the impact of a proposed bus gate and clean air zone (CAZ) on the A53 at Basford and Victoria Road in Fenton respectively.
The planned bus gate in Basford proposes that motorists would not be able to travel westbound on the A53 Etruria Road (Basford Bank) from the A500 junction towards Newcastle-under-Lyme during rush hours i.e., 7am to 10am and 4pm to 7pm on weekdays.
While we agree with the overarching aim of reducing air pollution and support the importance of protecting and promoting health, there is a real concern about the levels of consistency being applied when it comes to rolling out measures to tackle pollution.
We have written to Government ministers raising major concerns over the plans which the Government want to implement by 2025. The three local authorities involved i.e. Stoke-on-Trent City Council, Newcastle-under-Lyme Borough Council and Staffordshire County Council have also made joint representations to ministers seeking support to identify and deliver solutions that are more proportionate to the scale of the pollution that is predicted to exist in 2025.
Air quality on Etruria Road will likely be displaced rather than reduced to what is deemed acceptable. And there are many businesses based along Etruria Road and nearby Festival Park and their employees and customers will find it more challenging to reach the affected businesses each day as highlighted in Daily Focus.
There is real concern about the financial impact on businesses in the proposed CAZ stretching from Fenton to Joiners Square and Hanley as any businesses with vans and lorries which do not meet emissions standards, will be forced to upgrade fleets or pay a charge each time when entering the CAZ area.
If deliveries are made by vans and lorries that do not meet emissions standards, this charge may be passed on to the business based in the CAZ, who will face the dilemma of having to absorb the cost or pass it on to the customer.
We are inviting businesses to have their say on the CAZ and bus gate proposals in our quick poll to aid our representations to local authorities: http://bit.ly/3kl4XXr
If you want to talk to us about any business issues, including funding, you can call our switchboard on 01782 202222 or call the Stoke and Staffs Growth Hub Helpline on 0300 111 8002 or email: info@staffordshirechambers.co.uk
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