Staffordshire Chambers of Commerce has called on Chancellor Jeremy Hunt to provide a series of bold announcements and a much-needed shot in the arm for business when he delivers his Autumn statement next week.
The Chancellor has been urged to look at a range of crucial issues, including more investment in the energy grid network, reform of the ‘creaking’ planning system, the introduction of tax breaks and greater support for the hospitality and retail sectors.
Mr Hunt will be updating the nation on the state of the economy and announcing tax and spending decisions on Wednesday, 22 November.
Ahead of the speech in the House of Commons, Staffordshire Chambers Chief Executive Sara Williams has written to him calling for a number of measures to stimulate growth.
Sara said: “It’s almost four years since a pandemic effectively paused the economy. Post-pandemic recovery has seen the economy battling eye watering inflationary price rises and a soaring rise in the rate of interest.
“Our local businesses continue to face challenges with both the recruitment and retention of staff. This is why we hope your Autumn Statement will include a number of bold announcements, which will help the economy to weather continued headwinds.”
The letter refers to the Chamber’s most recent Quarterly Economic Survey for Q3, which took place in August, suggesting most firms are not reporting an increase in their investment plans.
It also states that research by the British Chambers of Commerce found that less than a quarter of firms are investing, as fears over high inflation and interest rates, alongside concerns around trade barriers and skills shortages, continue to bite.
Sara added: “Recent figures showed that GDP failed to grow in Q3 and this provides further evidence of the difficulties the UK economy faces.
“We believe that businesses are holding onto their money, with inflation refusing to drop to a manageable level and ongoing concerns about even more interest rate rises.”
The letter also sends a firm message to the Chancellor regarding tax reforms.
This includes a call to alleviate the lengthy delays in getting research and development (R&D) tax credit claims processed by HMRC.
Other measures proposed include the introduction of a rolling five-year guarantee for the continuation of the full expensing tax break, to increase take up.
Sara said: “The launch of tax breaks could serve as an encouragement for firms to offer Occupational Health benefits, which will help to keep people in work and avoid the disruptive and damaging impact of long-term sickness.”
There is also a call for reform of the “creaking planning system” which, the letter says, is long overdue and would help to speed up major infrastructure projects and develop the potential for businesses to grow.
And it also encourages an extension of business rates relief for retail and hospitality businesses, freezing the multiplier, and looking at a reform of the business rates system to better reflect firms’ ability to pay.
The letter concludes with a clear message to the Chancellor: “We hope that your Autumn Statement will outline a clear path for growth from Government, with a strategic vision and a framework which will serve as a shot in the arm for investment.”
