The introduction of an energy price cap for businesses and a delay to the planned increase in National Insurance are just two of the pressing matters on the Spring Statement wish list of West Midlands businesses.
Chancellor Rishi Sunak is due to address Parliament and the nation tomorrow with his 2022 Spring Statement with a cut in fuel duty and a rise in the state pension among the matters already rumoured in the media.
Here, business leaders in the West Midlands have outlined what they would like to see.
A survey by Lloyds Bank says businesses in the region are calling for the Chancellor to announce new measures to help with rising costs.
As inflation hits the highest levels seen since 1992, more than one-third (36 per cent) of businesses said that direct help with energy bills and rising costs topped their wish list.
This was followed closely by calls for a reduction in VAT, cited by 31 per cent while funding in training and developing skills was top of the list for 15 per cent of respondents.
Three in ten (30 per cent) of respondents said they were concerned about having to increase the costs of goods and services and more than one-quarter (27 per cent) stated that inflation was reducing profitability.
Dave Atkinson, regional director for the West Midlands at Lloyds Bank, said: "Rising prices are causing multiple challenges for businesses in the West Midlands and the pressure from inflation shows no sign of abating in the near-term.
"We will continue to play our part during this challenging time but firms want support from the Chancellor now to help with the cost of running their operations so they can continue to drive the region's economic recovery."
The Chancellor must use the Spring Statement to help businesses tackle unprecedented cost pressures head on, according to Greater Birmingham Chambers of Commerce.
The business body has issued a six-point plan that it would like to see Rishi Sunak introduce in a bid to help firms cope with soaring costs.
It is calling for the following actions:
- Introduce an energy price cap for businesses
- Provide SMEs with energy grants
- Introduce additional support for energy efficiency
- Delay planned National Insurance rises for a year
- Continue reform of the business rates system
- Extend the VAT reduction for hospitality businesses
Head of policy Raj Kandola said: "Often viewed as a minor fiscal event in relation to the Autumn Budget, the crisis in Ukraine coupled with the escalation of the cost of living crisis means the importance of the Spring Statement has been elevated to a whole new level.
"Whereas as the Chancellor has preached the importance of fiscal rectitude over the previous few months, the ongoing fallout from covid-19, rocketing levels of inflation and sky-high energy bills means businesses are facing unprecedented cost pressures.
"Right now, we need the Government to act decisively and tackle these issues head on - implementing our six-point plan would give businesses the breathing space they need to get back on their feet and plan ahead with a modicum of certainty."
Property agency JLL says "intervention is clearly needed" in the Spring Statement to address the rising energy costs that are impacting businesses.
Head of its Midlands operation Stuart Smith said: "An extended period of inflation, combined with increased borrowing costs, will almost certainly dampen the ability of developers and occupiers to make critical investment in retrofitting their buildings to meet better environmental performance standards.
"Our research points to a significant task for Birmingham to achieve its 2030 net zero target which will become all the more difficult if businesses are forced to retrench so soon after a period of post-Covid recovery."
Business leaders in Coventry and Warwickshire have joined calls for the Chancellor to take decisive action in his Spring Statement to help tackle the escalating cost of doing business.
Coventry and Warwickshire Chamber of Commerce has backed the British Chambers of Commerce's five-point plan that would help to support firms through the crisis.
It includes a delay to the impending National Insurance rise by one year to give firms much-needed financial headroom to weather the surge in costs.
The plan also calls for a temporary energy price cap for small businesses to protect them from some of the price increases they would otherwise face, offering the same protection as households.
The BCC is asking for additional financial support, through the expansion of the energy bills rebate scheme for households to also include small firms and energy intensive businesses, a new support fund, administered by Ofgem to support the smallest firms with rising energy bills and a six-month extension to the Recovery Loan Scheme until the end of this year.
The plan asks for a moratorium, for the life of this parliament, on all policy measures that increase business costs.
It also wants a commitment from the Government's Supply Chain Advisory Group and Industry Taskforce to continue to work with industry to urgently deliver practical solutions to ease the supply chain disruption and labour shortages that continue to drive the upward pressure on prices.
Sean Rose, head of policy at the Coventry and Warwickshire Chamber of Commerce, said: "The cost of doing business continues to rise and companies need decisive action in next week's Spring Statement to help them through this period.
"It's vital that businesses are given the confidence to invest and grow after two years of covid-19 restrictions that have stifled economic growth. That's why we are backing the BCC's five-point plan."
