The chancellor has been under pressure to help households with the cost-of-living squeeze, with prices rising by 6.2 percent in the 12 months to February – the fastest for 30 years.
In response in his Spring Statement on Wednesday he announced that he would cut fuel duty, raise the threshold at which people start paying National Insurance, and pledged to cut the basic rate of income tax before the next general election.
Unfortunately the outlook is bleak with growth projections slashed, fuel, energy and food prices soaring. More families will be pushed into poverty, having to make choices between ‘eat or heat’ and many firms will be forced to continue raising prices, further fuelling the cost-of-living crisis.
The British Chambers of Commerce (BCC) has stated that the Spring Statement falls short of what businesses needed and wanted. While there were some positive announcements that firms will welcome, it did not fundamentally address the huge cost pressures they are facing.
Businesses will no doubt be pleased that the employment allowance has been increased. This long running ask of Chambers will provide a small amount of financial headroom for firms facing rising costs.
But there was a missed opportunity to rebuild and renew the economy and ensure business has the resilience to weather the uncertain and volatile times ahead.
The cut in fuel duty, though welcome, is a drop in the ocean compared to surging costs bearing down on firms and households. And with the escalating cost of oil, it could be negated within a week. Smaller businesses are particularly exposed as they have neither the protections or financial support provided to households, nor the negotiating power of larger businesses.
Chambers are urging the government to act on pressing issues including an SME energy price cap – to tackle the escalating cost of doing business crisis. Firms need the headroom to keep a lid on prices, protect jobs and make investment that is so vital to sustaining our economic prospects.
Whilst chambers broadly welcome the chancellor’s firm commitment to cut taxes on business investment we will be keeping up the pressure on the government to react accordingly to whatever twists and turns global events present us with as well as doing all they can to provide and encourage investment which will boost productivity, whilst continuing the levelling-up agenda and the transition to net zero. You can view the key points of the statement here: Spring Statement: Key points at a glance – BBC News
Now for some good news!
Today sees the launch of the 2022 Staffordshire Chambers Business Awards.
We are moving the awards back to their usual summer slot and the grand gala final will take place at Uttoxeter Racecourse in July.
As always, our awards will showcase and celebrate the best business talent in Staffordshire with a variety of award categories that cover everything from new start-up businesses to multinational corporations – as well as awards for individual employees.
It’s a great opportunity for you to spotlight your business and get recognition for your work during the last 12 months. Shortlisted businesses receive invaluable coverage in local press and across social media and will be invited to a gala evening celebration on 14th July. The entry process is simple and streamlined and you can enter as many categories as you like.
This year’s Business Awards is kindly supported by HSBC as headline sponsors plus a sponsor for each category. The theme for the awards is innovation and sustainability – sponsored by Keele University and our award partners are We Are Staffordshire.
There are 15 award categories and one of the winners will also be crowned as overall Business of the Year.
For entry details and a full list of award categories and sponsors click here: www.staffordshirechambers.co.uk/awards
And if you need any help with your application, we are hosting two ‘How to write an award-winning entry’ masterclasses on Monday, 4th April. You can book your free AM slot, here, or a PM slot, here.
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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