BCC urges UK Chancellor for sustainable growth plan ahead of Budget

The Budget submission from BCC includes several recommendations. Firstly, the government is urged to match the £3 million industry-led funding designated for planning qualifications, aiming to address the shortage of local resources. Additionally, ministers are called upon to extend funding for business-led Local Skills Improvement Plans (LSIPs) beyond the current 2025 deadline, ensuring support until at least 2028.

The BCC also suggests restarting the VAT registration review to eliminate the existing cliff edge. Furthermore, it recommends reforming business rates to transform them into a tax that fosters growth. Lastly, the Chancellor is advised to introduce a new tax-free shopping scheme that is internationally competitive.

The urgency for action is underscored by findings from the BCC Insights Unit's inaugural business survey of 2024. Notably, 43 per cent of surveyed firms with turnovers below £85,000 express concerns about revenue growth, citing VAT obligations as a significant barrier. Additionally, a quarter of companies indicate alterations to expansion or relocation plans directly linked to business rates, with 38 per cent reporting increased payments following the 2023 rates revaluation.

Against the backdrop of formidable economic challenges, characterised by converging crises, current business conditions remain exceedingly challenging. While there has been a marginal uptick in business confidence, the BCC's Quarterly Economic Survey for Q4 2023 highlights persistent concerns regarding sales, cash flow, and investment.

Shevaun Haviland, director general of BCC 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. With the clock ticking before the General Election, next month’s Budget must outline the sustainable growth plan businesses are crying out for.”

Fibre2Fashion News Desk (KD)