‘Dear Chancellor…..’ – our wish list for the March Budget
We have written to the Chancellor of the Exchequer, Jeremy Hunt, who will deliver his Spring Budget on Wednesday (6th). With a General Election due to take place in the next ten months, the eyes of the business community will be trained on Mr Hunt when he makes his Budget announcements on Wednesday afternoon.
We have listened to the voices of our Chamber policy forums and listed below are some of the key issues on which we would like the government to act:
Business rates
In its current form, the business rates system is a burden on businesses regardless of ability to pay and it does not make allowances for the major changes that have taken place in the UK economy over the last decade. Many commercial premises in towns and cities lie empty and serve as a reminder of a struggle to compete with online shopping. Indeed, all of our local centres bear witness to this with some faring particularly badly, deterring not only visitors, but also potential investors.
Planning capacity at Local Planning Authorities (LPA)
Local authority planning teams are struggling under the strain of a heavy caseload, new legislation such as Biodiversity Net Gain (BNG) and challenges with recruitment and retention of planners. This is causing lengthy delays in getting planning application decisions turned around and also in local plans being developed. Faced with continued delays, businesses may choose to pause their growth and expansion plans, keeping the brakes on local economic development. Reform of a creaking planning system is long overdue.
Our British Chambers of Commerce (BCC) colleagues have announced a new partnership with Aviva, which will establish a five-year industry-led programme to increase skills and capacity in Local Planning Authorities (LPA). The programme aims to deliver at least 100 undergraduate and masters’ level qualifications for people entering the planning industry, and for people already working in LPA who need to develop skills for more senior planning roles. In return, at the end of their course of study, the learner must commit to work in a council planning role for at least two years. The BCC is asking businesses from all sectors to contribute to the programme’s fund with the aim of raising at least £3 million. We would like to see the Government commit to matching the £3 million contribution to ensure that LPA can employ newly qualified graduates for at least two years .
Grid capacity.
If we are to create dedicated vehicle charging infrastructure sites across the country, we need to see Government action to commit to ambitious plans for upgrades to the national electricity generation capacity and the distribution grid. This will require swift implementation, to make grid connectivity easier for infrastructure. Upgrades to the grid will also encourage those businesses who have capability of generating their own energy (such as through PV cells), to offload any surplus energy back into the grid. Across Staffordshire, we know of several businesses who are unable to do this, due to current grid limitations.
Transport
Last week saw the Government announcement of plans to deliver around £4.7 billion of funding to local authorities across the Midlands and the north of England, to deliver transport improvement programmes. Here in Staffordshire, we are keen to see progress in improving connectivity on some of our major transport routes. A50/A500 is a key east-west artery, connecting M6 and M1 and a vital transport route for some world recognised brands. A50/A500 is regarded as ‘North Midlands Manufacturing Corridor’ but suffers from congestion at key pinch points, notably Uttoxeter (B5030), Blythe Bridge (A521) and through much of the urban area of North Staffordshire. The A500 connects with the M6 at junction 15 but the layout of this key junction is no longer fit for purpose and in need of significant overhaul. Other transport schemes in the pipeline, include a re-opening of the railway between Leek and Stoke-on-Trent and opening of a new station in Meir. We would welcome greater clarity and financial agreement to progress these transport improvement schemes and a clear commitment to press ahead and improve local transport infrastructure.
VAT registration
We are calling for the VAT registration review to be restarted, with a view to removing the existing cliff edge. Further research conducted by our BCC colleagues found that 43% of respondent businesses with a turnover of less than £85,000, are concerned about growing revenue beyond this, specifically because of the requirement to pay VAT.
Skills and training
Staffordshire Chambers’ of Commerce has been appointed as the designated employer lead for the Stoke on Trent and Staffordshire Local Skills Improvement Plan (LSIP). Through our work in delivering the LSIP for Stoke on Trent and Staffordshire, we recognise that more needs to be done in developing a skilled workforce and tackling skills shortages. This is why we are calling for a commitment to fund business led LSIP beyond the current 2025 cut off period, with an extension of at least a further three years to 2028. A further three years will provide much needed time to continue our work in bridging the gap between the training needs of our local businesses and the delivery of targeted training and development programmes, to upskill our local workforce.
If you would like to join any of our Chamber policy forums and help to shape and influence our lobbying work, please contact me: declan.riddell@staffordshirechambers.co.uk
