A leading figure in Coventry and Warwickshire has urged the Chancellor to use next month’s Budget to cut the cost of doing business to help get the rate of unemployment down.
The unemployment figure remained unchanged at 4.9 per cent in the three months to July and Corin Crane, chief executive of the Coventry and Warwickshire Chamber of Commerce, said firms across the region are having to balance plans to grow with managing costs.
He said: “When we talk to businesses in Coventry and Warwickshire they tell us that costs are continuing to rise. They want to invest – in staff, in technology and their overall growth – but they are having to think long and hard about every penny they spend.
“From fuel and material costs through to staffing costs, businesses have been hit across the board. Our colleagues at the British Chambers of Commerce estimate the costs for the average small and medium-sizes business have gone up by 70 per cent in a decade.
“Much of that can be attributed to global factors but domestic policy hasn’t helped.
“That’s why we are urging the Chancellor to use his Budget in October to look at ways of getting costs down for business. The more confidence they have to invest and take on new staff, the more opportunity there is for the economy to grow more quickly.”
Caterina Batog, research and economics analyst at the British Chambers of Commerce, said: “Unemployment remained at 4.9 per cent, in the three months to July, a clear indication of the continued stress businesses are feeling as they navigate a world of increasing costs. Another rise in youth unemployment is particularly concerning.
“Business investment intentions are at their lowest level since the pandemic, with confidence continuing to weaken as firms hold off on spending ahead of the Autumn Budget.
“Last week, the Chancellor outlined how vital business is to the government’s plans to grow the economy. But if firms cannot afford to take people on then progress will be slow.
“The BCC’s most recent economic forecast suggests unemployment could reach 5.0 per cent by Christmas, with youth unemployment hitting 16.6 per cent, as firms continue to face pressure from high labour costs.
“Our cost stack calculator shows that costs for the average SME have increased by more than 70 per cent in the last ten years due to successive governments’ policies.
“If the Chancellor wants to deliver on No10’s promise of growth in every postcode then he must back business and cut costs. That means cutting employer National Insurance contributions for all under-25s, to help tackle the youth employment crisis.
“And it means a targeted tax reduction package to ease energy and business rate pressures for all firms.”
