Budget preview: Chamber calls on Chancellor to boost investment prospects and address skills challenges

New measures to drive business and infrastructure investment and a long-term commitment to tackling skills challenges are among a series of key asks published by Greater Birmingham Chambers of Commerce ahead of tomorrow’s Budget.

In line with the British Chambers of Commerce, the GBCC is calling on Chancellor Jeremy Hunt to introduce a series of practical measures to encourage investment, support firms in attracting skilled talent and send a signal to international investors that the UK remains open for business.

Measures the Chamber would like to see from the Budget are:

• Government to match industry-led funding of £3m for planning qualifications to help plug the lack of local resource.
• Ministers should commit to fund business led Local Skills Improvement Plans (LSIPs) beyond the current 2025 cut off point to at least 2028.
• The VAT registration review should be restarted with a view to removing the existing cliff edge. 
• Government should reform business rates to make it a tax that incentives growth.
• The Chancellor should introduce a new internationally competitive tax-free shopping scheme.

Raj Kandola (pictured), director of external affairs at Greater Birmingham Chambers of Commerce, said: “Businesses will be watching the Chancellor’s statement closely on Wednesday in order to gauge the direction of travel as we face the prospect of a General Election later this year.

“Early analysis of our latest Quarterly Business Report data reveals that companies are still facing challenges related to hiring staff along with cost pressures caused by inflation and interest rates and as a result, business investment continues to suffer.

“That’s why we are calling on the Chancellor to intervene with a series of practical measures which will help to crowd in more business investment, support firms in attracting skilled talent and send a signal to international investors that the UK remains open for business.

“Providing local planning authorities with the funding required to accelerate local infrastructure projects will help to bolster investment in areas that need it the most.

“Implementing the finding of Local Skills Improvement Plans will play a vital role in addressing skills shortages and reintroducing the tax-free shopping scheme will offer a huge boost to cities and towns across the UK and drive footfall for the retail and hospitality sectors which have been badly hit since the pandemic.

“Reform of the business rates system and restarting the VAT registration review will play an important part in tackling ingrained cost pressures and free up more cash to allow businesses to invest in training staff and new technology.

“With borrowing costs rising since the start of the year, it’s clear that Mr Hunt will have less fiscal headroom then he was hoping for – if anything this strengthens the case for the Government to roll out a plan of action which prioritises long term growth over short term electoral giveaways.

“As always, the GBCC policy team will be on hand to review the announcements made on Wednesday and offer a breakdown of what they mean for local businesses.”