Support with rising costs are top of business 'wish lists ' - Lloyds

Businesses in the West Midlands are calling for the Chancellor to announce new measures to help with rising costs ahead of his Spring Statement tomorrow, according to a recent survey from Lloyds Bank.

As inflation hits the highest levels seen since 1992, more than one-third (36 per cent) of businesses said that direct help with energy bills and rising costs tops their wish list for the Chancellor.

This was followed closely by calls for a reduction in VAT, cited by 31 per cent. Funding in training and developing skills was top of the list for 15 per cent of respondents.

Rising prices remain a key challenge for business. Three in ten (30 per cent) of respondents said they are concerned about having to increase the costs of goods and services and more than one-quarter (27 per cent) stated that inflation is reducing profitability.

One in ten (11 per cent) said rising prices had caused them to worry about having to scale back their operations and a further 11 per cent were having to consider pausing plans for expansion.

To help specifically with rising prices West Midlands businesses are asking the Chancellor for tax holidays or tax-incentives (40 per cent), a reduction in regulation and red tape (29 per cent) and grants to cover rising energy costs (26 per cent).

The data comes as businesses face continuing supply chain challenges, which are reducing the availability of stock (44 per cent), causing hikes in freight costs (33 per cent) and disruption through increased border controls and custom regulations (26 per cent).

Dave Atkinson (pictured), regional director for the West Midlands at Lloyds Bank, said: “Rising prices are causing multiple challenges for businesses in the West Midlands and the pressure from inflation shows no sign of abating in the near-term.

“We will continue to play our part during this challenging time but firms want support from the Chancellor now to help with the cost of running their operations so they can continue to drive the region 's economic recovery. ”