Budget an opportunity to restore business confidence - Chamber

Business leaders in Greater Birmingham are urging the Chancellor to use tomorrow’s Budget to reduce the cost of doing business and give firms the certainty they need to invest.

Greater Birmingham Chambers of Commerce contributed to the Budget submission of the British Chambers of Commerce (BCC), which says the UK has “a business confidence problem” rather than an ambition problem.

It points out that investment intentions have fallen to their lowest level since the pandemic, while policy-driven costs for a typical SME have risen by more than 70 per cent over the past decade.

The BCC’s three immediate priorities are:

• Cutting employer National Insurance for under-25s. The submission calls for extending the existing zero rate of employer National Insurance contributions to 21 to 24-year-olds, to lower the cost of entry-level hiring.
• Immediate cost relief. It proposes funding 75 per cent of the Renewables Obligation on business electricity bills and cutting all business rates multipliers by at least one percentage point.
• Local export support. The BCC wants a consistent export-support offer across England, delivered through trusted local partners including chambers.

Beyond the Budget, the Chamber network is calling for stable five-year funding for Local Skills Improvement Plans, a possible SME skills tax credit and full use of the Growth and Skills Levy for employer-led training.

It also wants faster delivery of infrastructure, more planners and a long-term business tax roadmap, including no further rises in the tax take on business during this Parliament.

Emily Stubbs (pictured), head of policy at Greater Birmingham Chambers of Commerce, said: “Businesses across Greater Birmingham are not short of ambition. They want to invest, recruit and grow, but many continue to face rising employment costs, persistent recruitment pressures and uncertainty about the economic outlook.

“This Budget is an opportunity for the Chancellor to restore business confidence by reducing the cost of doing business and providing the certainty firms need to invest for the long term.

“The UK’s strengths as a place to start, scale and invest in a business are considerable, but maintaining that advantage in an increasingly competitive global economy requires the right conditions.

“Businesses need a stable and predictable tax environment, support with energy costs and trading internationally, and headroom to invest in skills and infrastructure.

“Tackling economic inactivity among young people must also be a priority. Extending employer National Insurance relief to 21 to 24-year-olds would make it more affordable for businesses to create entry-level opportunities, helping more young people into work while supporting employers facing ongoing labour shortages.

“The choices made in this Budget will shape business confidence for years to come. Businesses will be looking for a clear signal that growth remains the government’s overriding priority.”

The Chamber will analyse the Budget announcements and what they mean for Greater Birmingham businesses.

• Register to attend the Birmingham Economic Summit on 1 December for a comprehensive analysis of the city’s economy over the last 10 years and, in the wake of the Budget, actionable measures that businesses and stakeholders from across the city-region can take to drive economic growth.