Chancellor must use Budget to prioritise growth - report

Mid-sized businesses in the West Midlands want the Chancellor to prioritise growth in the upcoming Budget over introducing or extending Covid-19 support, according to a new national survey from Grant Thornton UK LLP.

Some 51 per cent of companies in the region think Rishi Sunak should focus on measures to encourage business growth, versus 33 per cent who want additional Covid-19 support and 16% who are in favour of recovery measures.

Incentives for employers to invest in R&D, incentives to support low carbon business strategies and simplification of the UK business tax system top the wish lists of mid-market businesses in the region, each cited by 39 per cent of respondents.

Levelling up also remains high on the regional agenda, with 35 per cent of business leaders wanting to see a commitment to greater devolution of powers and investment in the Midlands when the Chancellor make his statement to the House of Commons on 3 March.

This focus on growth reflects an overall uptick in optimism since the end of 2020, with 80 per cent of West Midlands businesses surveyed feeling optimistic about the outlook of the UK economy over the next six months - a 16 percentage point increase compared to December last year.

Dave Hillan (pictured), partner and practice leader at Grant Thornton in the region, said: “Government support has been vital during the pandemic, yet as we can see clearly from the findings of this research the region 's businesses are starting to look longer term, prioritising incentives and investment that support growth, with less reliance on government handouts.

“The increased levels of optimism compared to the end of last year are a welcome sign that business leaders are starting to see light at the end of the tunnel, no doubt driven by the ongoing success of the UK vaccine programme and the Bank of England 's predictions of a strong economic recovery.

“It is important that the government capitalises on this optimism as a driver for growth and backs business in the right way. ”