Local businesses face ‘pressure cooker’ climate
Firms are operating in a ‘pressure cooker climate’ with fears over taxation, inflation, and staff costs dominating concerns, new research reveals. A report from the Shropshire Chamber of Commerce highlights a subdued picture for many companies in the area, noting that new tariffs are also affecting businesses directly or indirectly.
The latest quarterly economic survey shows that fewer than a quarter of businesses are investing in training or new machinery, with little more than a third of local employers working at full capacity. Nearly two-thirds of companies cited taxation as a ‘fear factor’ ahead of the Government’s November budget.
Several businesses said they would have looked to take on more staff if it wasn’t for the ‘massive additional strain’ of the new employer National Insurance. A firm in the professional services sector said: “Our order book is down. Customers are not spending their cash due to the current business climate.”
Despite the challenges, there was some positive news on turnover and profitability confidence. There was a 10% jump in firms reporting a rise in turnover, and a 6% increase in those seeing an upturn in profits.
Rosie Beswick, a policy analyst at Shropshire Chamber, said: “Overall, the picture remains subdued with businesses reporting slowdowns or layoffs. The report fieldwork was carried over three weeks in August and September when US tariffs and wage cost rises were in place. However, the very moderate positive rises in certain areas does show that the impact of the introduction of the new wage costs has started to settle to a new, albeit rather depressed norm.”
The Shropshire Chamber of Commerce’s Quarterly Economic Survey is open to any business of any size in Shropshire or Telford & Wrekin, and companies do not need to be a member to take part. The results are used by the Bank of England and other relevant bodies to understand the state of the economy.
