Chancellor of the Exchequer Jeremy Hunt is being urged to set out a clear path for growth when he delivers his Spring budget next week.
Staffordshire Chambers of Commerce has written to the Chancellor asking him to outline a strategic vision and framework that will serve as a shot in the arm for local and national investment.
Among the Chamber’s priorities is a clear government financial commitment to reverse the current economic decline, which, it says, is stopping businesses investing for the future. This includes a reform of the business rates system and a restart of the VAT registration review.
There are also calls for a reform of the creaking planning system, an ambitious plan to upgrade the national electricity generation capacity and the distribution grid, as well as an acceleration in the roll-out of electric vehicle charging infrastructure.
The letter signed by the Chamber’s Policy Adviser Declan Riddell, Chair of its Money Matters Forum Chris Alderman, Chair of the Planning and Infrastructure Forum Carl Copestake and Chair of the Transport Forum Mike Herbert has also been sent to all seven of North Staffordshire’s MPs.
It goes on to ask for greater clarity and financial agreements to progress key transport schemes such as improvements to the vital A50/A500 route, the railway between Leek and Stoke-on-Trent and the opening of a new station in Meir.
This subject is particularly in the spotlight following a Government announcement earlier this week, reported in Daily Focus, to deliver around £4.7 billion to local authorities across the Midlands and the north of England in the wake of the HS2 phase 2 cancellation.
As the designated employer lead for the Stoke-on-Trent and Staffordshire Local Skills Improvement Plan (LSIP), the Chamber is also calling for a commitment to fund business led LSIPs beyond the current 2025 cut off – with an extension of at least a further three years.
The Chamber also wants to see greater flexibility around the use of the Apprenticeship Levy to allow for expanded training and upskilling of workers.
Outlining its ‘key business asks’ and highlighting the problem behind lack of investment, the Chamber letter states: “Our most recent Quarterly Economic Survey (QES) took place in November 2023 and the results suggested that most firms are still not reporting an increase in their investment plans.
“Research by the British Chambers’ of Commerce (BCC) 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.
“Firms in the hospitality, catering or tourism sectors are most likely to be cutting back on investment plans. All of this against the backdrop of a stubbornly tight labour market.
“A recent announcement confirmed that the UK economy had officially slipped into recession, after successive negative growth of GDP in quarters three and four of 2023. We need clear government financial commitment if the economy is to reverse the decline and move in a forward direction.”
The letter concludes: “We hope that your Spring Budget 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.”
