'Urgent measures' needed to aid Shropshire businesses as March Budget approaches

Latest research shows that nearly half of employers are worried about being able to keep up with their energy bill payments when the Government’s current support package comes to an end.

According to the British Chambers of Commerce, two thirds of firms also say they are being forced to increase the price of their goods or services to combat rising operating costs.

Ruth Ross, Shropshire Chamber’s deputy chief executive, said: “On top of these factors, many employers continue to experience difficulties recruiting staff, and remain concerned about regulation and taxation.

"Taken together, this body of evidence shows why it is vital that the Chancellor announces measures on Budget day which will rapidly inject confidence and fuel investment.”

It follows calls for the government to take action in the Budget to support hospitality businesses.

The UKHospitality Quarterly Tracker, in association with CGA, has shown hospitality revenue was up 4.2 per cent in 2022 compared to 2019, but down 13 per cent in real terms when inflation is accounted for.

A report says that cost pressures, alongside ongoing labour shortages and Covid-19 debt, has left many hospitality businesses in a ‘perilous position’.

Mike Goodall, development officer for the Shropshire, Hereford and Worcester area for the Federation of Small Businesses, added: “Hospitality has been one of the hardest hit sectors but the FSB will be pushing the Government hard to introduce measures to help off-set some of those increased costs, such as action on business rates plus an increase in the VAT threshold, and we are also pushing the Government on something called a 'help to green' voucher. It is a financial incentive for businesses to adopt green measures.”

The calls come as Shropshire Chamber of Commerce has launched its latest quarterly survey to assess the health and confidence of the local business community during the first quarter of this year.

Ruth added: “It’s really important for us that as many businesses as possible take time to fill in this survey. It is completely anonymous, so that you can speak freely.

“Every single business voice matters. The greater the voice, the greater the influence we can have to support the businesses of Shropshire.”

The previous survey, covering the final three months of 2022, revealed that many Shropshire businesses were starting this year under ‘immense pressure’ due to a combination of energy costs, staff shortages, increased taxes and wage inflation.

More than 80 per cent said they were now having to offer higher salaries in an attempt to fill vacancies, or retain staff.

Many businesses said they were expecting to see profits dented in the coming year, with relatively stable turnover against a sharp rise in operating costs, the results revealed.

The latest survey questions employers on a range of key issues including cashflow, sales, skills, training, recruitment, investment, and business confidence. To fill it in, go to https://www.surveymonkey.co.uk/r/ShropChamberQES1-2023