Shropshire's business voice is heard

The British Chambers of Commerce has highlighted the concerns of Shropshire’s small business community on a national stage in the results of its latest quarterly economic survey.

The UK’s largest independent business sentiment survey reveals that, with the Budget just weeks away, inflation is the top concern among employers, followed by taxation.  

Nearly half of firms surveyed said they expected turnover to rise this year – but fewer than one in five plan to increase investment over the coming months.

The report highlights feedback from Shropshire Chamber of Commerce’s quarterly economic survey, where a small manufacturing firm said: “The running costs to simply turn the light on these days is shocking.

“We are keeping our head above water, but the rise in business rates, National Insurance and others which the government implemented have not done any favours to SMEs.

“We are meant to be the life blood of the economy, yet are the ones who are suffering.” 

Liz Keirle, Shropshire Chamber’s policy and patron engagement manager, said: “We welcome the BCC’s spotlight on the voice of our business community. This is proof that the comments made in our quarterly economic survey are being heard on a national lobbying stage.

“It’s also a reminder of why it’s so important for Shropshire businesses to have their say when we release our own surveys every three months. What they tell us really can drive change.”

More than 90% of the businesses which fed into the British Chambers of Commerce survey were small and medium sized businesses.

It found that business confidence had improved slightly over the three-month period, but the hospitality sector remained under the most pressure.  

Inflation remains the top concern, with labour costs far and away the main price pressure. Utility costs continue to be a concern, and 86% of firms in the transport and logistics sector highlight fuel costs as a price pressure with the Middle East conflict continuing. 

David Bharier, deputy director of economics and insight at the British Chambers of Commerce said: "The survey points to an economy stuck in low gear. Most firms are reporting no improvement across almost every indicator we track. 

"It's a positive that the decline of the preceding quarters hasn't continued, and turnover confidence has seen a slight bounce. But the underlying trend still points to flatlining, with just 17% of firms increasing their investment, a post-pandemic low. 

"There is also a big imbalance beneath the headline. Larger firms are driving any improvements to indicators, while the smallest businesses have seen sales and cash flow fall further. Hospitality remains the sector under the most pressure. 

"Firms are being held back by two constraints. Global volatility is driving up prices and pushing firms to defer investment decisions, while the underlying cost base continues to rise, particularly around employment.

“Our cost stack calculator shows domestic policy-driven costs alone have risen by more than 70% in the past decade for a typical SME. As the Chancellor finalises the Budget, every major measure should be put through our Growth Delivery Test: what will it get firms to do that they aren't doing now?" 

Pictured: Liz Keirle, Shropshire Chamber’s policy and patron engagement manager