Business Leaders Call For Tax Reductions And Export Support Ahead Of Autumn Budget
Cumbrian business leaders are calling for measures to reduce operating costs and strengthen support for companies ahead of the Autumn Budget.
Cumbria Chamber of Commerce managing director Suzanne Caldwell has backed calls for immediate action on business costs ahead of Chancellor John Healey's Budget on October 28. The chamber is supporting proposals from the British Chambers of Commerce covering employer National Insurance, energy costs, business rates and export support. The proposals are aimed at giving firms greater financial breathing space while encouraging investment, employment and growth. The chamber says smaller businesses need greater certainty before committing to additional staff, equipment and capacity.
One of the central proposals is a reduction in employer National Insurance contributions for workers aged under 25. The British Chambers of Commerce says the measure could help businesses create more opportunities for younger people at a time when youth unemployment remains a concern. Cumbria Chamber of Commerce has highlighted the potential importance of the measure for local employers considering apprenticeships and other entry level positions. The proposal is part of a wider package intended to reduce the costs associated with employing staff.
The chamber is also backing a targeted tax reduction package aimed at easing pressure from energy bills and business rates. Business costs have risen across several areas in recent years, increasing the financial pressure on companies already managing higher employment and operating expenses. The British Chambers of Commerce says policy related operating costs for a typical small or medium sized business have increased by more than 70 per cent over the past decade. It argues that reducing some of those costs could create greater scope for firms to invest.
Energy costs are another area highlighted in the proposals submitted ahead of the Budget. The British Chambers of Commerce has called for the Government to fund 75 per cent of the Renewables Obligation for businesses, which it says would reduce energy costs for firms. It has also called for lower business rates multipliers. The measures are presented as ways of reducing immediate pressures while giving companies more certainty over their future costs and investment decisions.
Export support is also included among the key demands. The British Chambers of Commerce is calling for consistent, locally delivered support to help more small and medium sized businesses reach international markets. For Cumbrian companies, improved access to advice and practical assistance could help businesses identify overseas opportunities and develop their export activity. The chamber argues that supporting companies to sell internationally could contribute to wider economic growth and turn business innovation into new markets.
Ms Caldwell said businesses play an important role in creating wealth and supporting regional economic growth. She also referred to the Chancellor's comments about using public procurement to support British capability. She said smaller firms needed to be able to compete for contracts on a level playing field and that clear project pipelines were important. Greater certainty around future projects can allow companies to plan staffing, investment and capacity rather than making decisions based on short term expectations.
The call for action comes as businesses continue to face uncertainty over the cost of operating. Employment costs, energy bills and business rates are among the expenses affecting companies across different sectors. Businesses must also make decisions about recruitment, training and investment while trying to maintain their competitiveness. The chamber says further increases in taxation would add to those pressures and is calling instead for measures that provide firms with room to invest.
The issue of youth employment is also part of the wider discussion surrounding the Budget. The British Chambers of Commerce has pointed to the number of young people who are not in education, employment or training. It supports the expansion of the Local Apprenticeships Service but says businesses need to feel confident enough to take on young workers. Reducing employment costs for under 25s is being proposed as one way of encouraging firms to create additional opportunities.
Apprenticeships could provide businesses with a route to developing skills while giving young people opportunities to enter the workforce. However, employers must consider wages, National Insurance, training and other costs when deciding whether to recruit. The chamber's proposals therefore link youth employment with wider measures aimed at reducing the cost of employing people. The approach is intended to address both business pressures and the challenge of improving employment opportunities for younger workers.
The proposals also come against a wider backdrop of concern among Cumbrian businesses about taxation and rising costs. Recent research involving businesses across the county found that tax increases and inflationary pressures were among their leading concerns for the coming year. The findings indicate that many firms remain focused on growth while also reviewing how higher costs could affect investment and future plans. This provides further context for the chamber's call for the Budget to avoid adding to existing pressures.
Public procurement is another area where the chamber sees potential for regional businesses. Government spending on major projects can create opportunities for companies to supply goods and services, but smaller firms need clear information and realistic routes into procurement processes. Ms Caldwell said projects should have clear pipelines so businesses can develop the people and capacity required to compete. This would be particularly relevant to smaller companies that cannot easily absorb uncertainty around large contracts.
The British Chambers of Commerce has also called for a longer term roadmap covering skills, infrastructure, taxation and public investment. While immediate reductions in costs are being requested, the organisation says businesses also need greater certainty about the direction of economic policy. A clearer long term framework could help companies make investment decisions with greater confidence. The chamber network has also highlighted the importance of involving employers in local skills planning and economic development.
For Cumbria, export support could provide opportunities for businesses across a range of industries. Companies seeking international customers can face practical barriers involving market information, regulations, contacts and logistics. Locally delivered support can help businesses understand those requirements and identify suitable markets. The chamber's proposal is therefore focused not simply on reducing costs but also on improving the assistance available to firms seeking to expand beyond the domestic market.
The proposed measures form part of a wider set of recommendations being put forward by business organisations before the October Budget. The British Chambers of Commerce has asked for reductions in selected employment and operating costs alongside stronger export support. It has also called for a longer term approach to skills, infrastructure and taxation. These recommendations are being presented to the Government ahead of the Chancellor's statement, with the final Budget decisions yet to be announced.
Ms Caldwell said the Autumn Budget needed to give businesses breathing space rather than introduce further financial pressure. Her comments reflect the chamber's position that companies need lower costs and greater certainty to invest in staff, capacity and growth. The proposals now form part of the wider business debate ahead of October 28, when the Government is expected to set out its taxation and spending decisions for the coming financial period.
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