Staffordshire businesses are ready to grow, but rising costs and barriers to recruitment and investment are holding them back. The Budget must deliver practical help, argues Stuart Elford, Chief Executive of Staffordshire Chambers of Commerce.
“Staffordshire does not need persuading that making things matters. The question is whether the Government will make it easier for our businesses to employ more people and invest.
Chancellor John Healey’s conference speech recognised business as the engine of wealth creation and promised to use public spending to support British industry. That is welcome. But the Budget on 28 October must turn that ambition into practical help.
Across our county, rising employment and energy costs are squeezing the money available for recruitment and expansion. Our latest business survey shows labour costs and utilities remain the biggest pressures.
First, there must be no further business tax rises. Lower business rates multipliers and a clear timetable for reform would give companies breathing space, from manufacturers to independent shops in Stafford, Newcastle-under-Lyme and our market towns.
Second, cut the Renewables Obligation charge on business electricity bills by 75%. This would reduce a specific electricity bill charge, providing practical help with production costs and giving businesses scope to invest in their future. For Staffordshire’s ceramics and manufacturing businesses, energy cannot remain an afterthought. Responding to Chancellor
Third, reduce employer National Insurance contributions for under-25s. Expanding apprenticeships is welcome, but employers must be able to afford to recruit. Training should follow the needs identified through our Stoke-on-Trent and Staffordshire Local Skills Improvement Plan, with employers shaping provision.
Public procurement must also reach smaller businesses. The £6 billion commitment to British shipyards should open opportunities throughout supply chains, not simply for the biggest contractors. Publish clear contract pipelines and give Staffordshire firms a fair chance to compete.
Locally, we need firm commitments to A50/A500 improvements and faster, more affordable electricity grid connections. Support our visitor economy by reducing hospitality VAT to 10 per cent, and give exporters consistent, locally delivered help to find new markets.
Success should be visible on a factory floor in Stoke-on-Trent, on a high street in Leek and in a young person’s first job. National announcements only count when they change what businesses and communities can achieve here in our county.
None of this is about asking Government to run businesses. It is about removing barriers that make growth harder than it needs to be.
The Chancellor should judge every Budget measure by one simple question: will it encourage a Staffordshire business to recruit, invest or export when it otherwise would not?
That is the test. Staffordshire is ready to play its part.”
