Chancellor must act decisively to tackle cost pressures - Chamber

Business leaders in Greater Birmingham are calling on the Chancellor to “act decisively ” in his Spring Budget to help businesses tackle crippling cost pressures.

Greater Birmingham Chambers of Commerce has published a series of key interventions it would like to see from the Government in tomorrow 's Budget.

These include a review of energy schemes to ensure support remains in place for firms, a further shake-up of business rates and a reform of the Apprenticeship Levy in a bid to ease labour market difficulties.

Chancellor Jeremy Hunt is expected to keep the Energy Price Guarantee at current levels for a further three months from April, while a 12-month freeze on fuel duty and support for those on benefits with childcare costs have also been mooted.

There could also be significant news for the West Midlands in the form of a 'trailblazer ' devolution deal, giving the West Midlands Combined Authority unprecedented control over budgets across areas such as housing, education and transport.

The GBCC is calling on the Chancellor to:

• Offer flexibility around the Energy Bill Discount Scheme to account for higher than expected energy costs
• Review the Energy & Trade Intensive Industries Scheme to ensure all appropriate sectors are eligible for support
• Boost the power of Ofgem to protect business customers
• Continued reform of business rates with a focus on more frequent revaluations and reduce the overall level of the multiplier
• Conduct a full review of the Shortage Occupation List and reform the Apprenticeship Levy to introduce more modular, short form courses to help tackle labour market shortages
• Use the Trailblazer Devolution Deals to create a blueprint for greater energy storage at the regional level in a bid to encourage the net zero transition
• Explore the options around enhanced capital allowances to encourage business investment

Raj Kandola (pictured), head of policy and strategic relationships at the GBCC, said: “The precarious nature of the Government 's finances leaves very little room for manoeuvre as the Chancellor battles to stick to his self-imposed fiscal rules whilst stimulating growth.

“Whereas the prospect of a deeper recession continues to fade, the UK finds itself stuck in the slow lane for growth as record levels of inflation, rising interest rates and sky-high energy prices continue to bite.

“Now is the time for the Chancellor to act decisively in order to tackle the huge cost pressures firms are currently facing - the premise of the Energy Bill Discount Scheme rests upon a longer term reduction in wholesale gas prices but market volatility could soon lead to rocketing energy bills for businesses if not handled correctly.

“In November, the Treasury introduced a series of much-needed reforms to the business rates system to improve efficiency.

“However, we would urge the Chancellor to go much further in order to free up funds for cash strapped businesses, particularly for those hospitality and retail firms that are unlikely to benefit from the next phase of energy support.

“It 's pleasing to hear the Chancellor is making serious attempts to make childcare more affordable for working parents.

“It remains to be seen whether pension reforms will do much in the short term to attract those workers that took early retirement during the pandemic. ”

As well as benefiting from the expected devolution deal, the West Midlands has been earmarked as one of 12 new investment zone to “supercharge ” growth in high-tech industries.

The government says the scheme - backed by £80m of investment over five years in each of the zones - is designed to accelerate research and development in the UK 's “most budding industries ”.

Henrietta Brealey, chief executive of the GBCC, said: “The West Midlands region is home to a population larger than Scotland's and an industrial mix that gives it huge potential to power the country 's green growth ambitions.

“We want to see the region front and centre in the Government 's plans for catalysing growth. A key pillar of this is a new Trailblazer Devolution Deal with the West Midlands Combined Authority.

“If the Levelling Up Agenda is going to brought to life then proper decision making powers need to rest in the hands of those that understand the local landscape.

“We will be watching out for this, and the detail on these revised proposals for investment zones, in the Chancellor 's budget tomorrow. ”