Mini-budget: Chancellor must recognise short-term needs - Chamber

Business leaders in Greater Birmingham are calling for a series of short-term measures in tomorrow 's 'mini-budget ' to ease cost pressures on businesses.

Chancellor Kwasi Kwarteng 's announcement is expected to include a reversal of plans to increase National Insurance, scrapping planned increases on Corporation Tax, ending the cap on bankers ' bonuses and plans to create new low tax zones across the UK in a bid to generate economic growth.

However, Greater Birmingham Chambers of Commerce has set out a series of measures they would like to see Government bring forward to help firms through the next few months.

They include:

• Providing Ofgem with more power to strengthen regulation of the energy market for businesses
• Temporarily reversing the increase in National Insurance Contributions to ease financial difficulties firms are facing
• Temporarily extend VAT relief for hospitality and non-essential retailers, given that many are still struggling with debts accrued during the pandemic
• Continue with meaningful reform of the business rates system including reducing the level of the multiplier, removing plant and machinery from the ratings system and simplifying the appeals process
• Immediately review and reform the Shortage Occupation List to reduce wage pressures and fill vacancies

Erin Henwood (pictured), policy advisor at Greater Birmingham Chambers of Commerce, said: “The energy price cap announcement will have provided a much-needed shot in the arm for businesses that have been struggling for months with spiralling costs driven by rampant inflation.

“Now all eyes will turn to the mini-Budget on Friday to understand what the new Government 's plans for growth entail.

“Some of the measures which have been floated seem sensible - a temporary reprieve on National Insurance payments is something the GBCC has long called for to help those businesses struggling with huge overheads.

“Setting up low tax zones to drive economic activity across less productive parts of the UK feels like a nod to the previous administration 's Levelling Up agenda, although more detail is required to understand how these zones will work in practice.

“Ultimately, we hope the Chancellor recognises the additional short-term support businesses will need to get through the next few months - equivalent action on tackling labour shortages, supply chain disruption and rising material costs needs to be at the heart of a proactive plan.

“As always, the GBCC will provide a full breakdown of the measures included in the Mini Budget and what they mean for local businesses. ”