'Black Cloud' is hanging over the Shropshire business community
The fallout from the November budget is hanging over the Shropshire business community like a ‘black cloud’, according to the results of the latest economic survey from the county’s Chamber of Commerce.
It said employers were being ‘squeezed’ by four key factors – tax rises, employment rules, rising inflation, and the aftermath of the November budget.
The quarterly survey quizzed business owners on a wide range of topics including sales forecasts, international trade, recruitment, training, cashflow, and confidence levels to gain a snapshot of the mood among local employers,
Nearly three quarters of the firms which responded said they expected to increase prices over the next three months – a rise of 16% on the previous quarter.
One of the biggest concerns voiced in the survey was April’s upcoming rise in employer National Insurance contributions.
One company in the marketing sector said: “National Insurance increases have hit us hard, and we have had to shelve our plans to employ two additional staff. In fact we are now considering redundancies.”
Another company in the professional services sector added: “Business confidence is on the floor. Customers are cautious of placing orders – the doom and gloom news headlines are scaring them.”
Rosie Beswick, Shropshire Chamber’s policy analyst, said: “It is abundantly clear from the results of this survey that businesses across the county are feeling squeezed from several directions right now.
“The November Budget still hangs over them like a black cloud, and is causing worry for many – 73% said the Chancellor’s decisions were now having a negative impact on their business.
“Increased taxes such as April’s upcoming rise in employer National Insurance are blunting recruitment, and stalling investment. And the introduction of further employment rules is adding to employers’ woes.”
Two thirds of Shropshire businesses said they now viewed taxation as a ‘fear factor’, while the proportion worried about inflation was up by 10% on the final three months of last year.
The rate of companies looking to invest in plant and machinery fell by 11%, and there was a 7% fall in the percentage of employers planning to invest in training in the coming months.
The survey also revealed a fall in both current sales and future orders, and a 5% reduction on companies seeking to take on staff, while more than one in four employers said bad debts were increasing.
There continues to be a mismatch between the type of jobs on offer in Shropshire, and the type of work that many people are looking for.
One professional services company said: “We have tried to recruit some part-time office-based staff over the past year, but people want hybrid work which we are not geared up to offer.”
Shropshire Chamber of Commerce’s quarterly economic survey is open to any business of any size in Shropshire or Telford & Wrekin. Companies do not need to be a member of Shropshire Chamber to take part.
Shropshire’s results are fed into the national survey by the British Chambers of Commerce, which is used by the Bank of England and other relevant bodies and economists.
Ruth Ross, Shropshire Chamber of Commerce’s chief executive, said: “It is clear that there is a very challenging year ahead for many businesses in the county.
“We are committed to lobbying on behalf of Shropshire’s business community, to ensure their voices are heard in the corridors of power.
“And we are here to support and signpost our members to the help and support they need, from finance to human resources, international trade, legal advice, and much more. Together, we are stronger.”
The Chamber will also be celebrating business success stories across the county at its annual business awards, which celebrate their 25th anniversary this year.
Entries are now open, and the closing date is April 4. The winners will be announced in front of hundreds of people at Telford’s International Centre in June. Entry details are on the Chamber’s website, shropshire-chamber.co.uk.
Ruth said: “It’s more important than ever at times like this that we celebrate the success stories in the Shropshire economy, and not become totally consumed by doom and gloom headlines. We have a brilliant and resilient business community.”
