Lincolnshire Chamber of Commerce urging the Chancellor to think of businesses on budget day
It comes as Jeremy Hunt will announce the Spring Budget this time next week
Ahead of the Spring Budget announcement next week, Lincolnshire Chamber of commerce are calling on the Chancellor to outline a sustainable growth plan for local businesses,
They're calling for more commitments to skills shortages and new schemes to help the most impacted sectors - that being retail and hospitality
Simon Beardsley - the Chief Executive of the county's Chamber of Commerce tells us more:
"Lincolnshire as an economy tends to lack behind the UK, so we don't necessarily see the major peaks, and we don't necessarily see the major downsides either. But the real challenge we have is the weather recently, particularly on the agricultural sector which'll have an impact on the price of crops going forwards.
He added that there's likely more challenges to come:
"There's still some downsides to come because there's a lack of aspiration in terms of the growth forecasts going forwards, labour costs and inflation still remain a concern for many businesses, and cash flow is one of the things that they keep telling us is a concern going forwards as well.
"We have some national impacts making a really big local issue; news of Body Shop, Wilko, HMV, we even have some more locally to the likes of Reebos in Boston or banks such as Barclays pulling out of Boston and Splading as well."
Lincolnshire Chamber are one of the 53 Chambers that operate in the UK and feed in members views.
Among the recommendations in the British Chambers of Commerce Budget submission are:
- Government to match industry-led funding of £3m for planning qualifications to help plug the lack of local resource.
- Ministers should commit to fund business led Local Skills Improvement Plans (LSIPs) beyond the current 2025 cut off point to at least 2028.
- The VAT registration review should be restarted with a view to removing the existing cliff edge.
- Government should reform business rates to make it a tax that incentivises growth.
- The Chancellor should introduce a new internationally competitive tax-free shopping scheme.
Findings from the BCC Insights Unit’s ‘first major business survey of 2024 highlights the urgency for action at the Budget.
43% of responding firms with a turnover of less than £85,000 say they are concerned about growing revenue beyond this specifically because of the requirement to pay VAT.
Meanwhile, over a quarter of companies (26%) say they have changed plans to upgrade or open premises as a direct result of business rates.
38% of responding businesses say they are now paying more following the 2023 rates revaluation.
Current business conditions are among the hardest seen in generations as multiple economic crises converge. The BCC’s Quarterly Economic Survey for Q4 2023 showed that while business confidence has improved slightly, most firms continue to report no improvement to sales, cash flow or investment.
Shevaun Haviland, Director General of the British Chambers of Commerce said:
“As businesses continue to chart a course through choppy economic waters, they want to work in partnership with Government to get the UK economy growing again.
“The Chancellor has shown he is in listening mode. At the Autumn Statement we were pleased to see full expensing made permanent and business rate relief. The Budget is an opportunity to build on that good work and further accelerate help for business.
“Our recommendations are solution focused. We’re actively working with industry to develop a UK-wide, private sector funded programme to train more planners to work in local planning authorities, to boost their planning skills and capacity. Alongside our fund, we’re calling for the Chancellor to provide more funding to LPA’s in greatest need of skills. That will support the authorities, to employ the additional graduates and upskilled professionals we are training. Unlocking our planning system is crucial to economic growth.
“Our latest research shows that many SMEs are struggling because of business rates, and are limiting their expansion plans because of the VAT threshold. The Chancellor should use his statement next month to announce plans to make rates fairer and restart the VAT registration review.
“Attracting, retaining and developing people with the right skills is crucial for business. But far too many employers are struggling to do that. Business-led Local Skills Improvement Plans (LSIPs) are key to resolving skills shortages. They are already making a huge difference in communities across England. LSIPs need long-term commitment and funding, to ensure people can access the training they need for great jobs.
“A new internationally competitive tax-free shopping scheme would help turbocharge the UK’s retail and hospitality sectors, bringing benefit to all corners of the UK through economic growth and tax revenue. The Government must signal that the UK is open for business.
“With the clock ticking before the General Election, next month’s Budget must outline the sustainable growth plan businesses are crying out for.”