'A black cloud hangs over Shropshire economy' - Survey shows county businesses feeling the post-budget pinch

Results from the latest Shropshire Chamber of Commerce poll were released today, highlighting business fears on tax rises, employment rules, rising inflation, and the aftermath of the November budget - and leaving Shropshire firms on the brink of a "challenging year" ahead.

The responses were gathered as part of a quarterly economic survey which quizzes business owners on a wide range of topics including sales forecasts, international trade, recruitment, training, cashflow, and confidence levels in order to gauge the mood among local employers.

The organisation says they highlight real concerns for county firms, with changes to employer's National Insurance contributions and an increase in the National Minimum Wage announced in the Chancellor's Autumn Statement set to kick in next month.

“It is abundantly clear from the results of this survey that businesses across the county are feeling squeezed from several directions right now," said Rosie Beswick, Shropshire Chamber’s policy analyst.

“The November Budget still hangs over them like a black cloud, and is causing worry for many – 73% said the Chancellor’s decisions were now having a negative impact on their business.

“Increased taxes such as April’s upcoming rise in employer National Insurance are blunting recruitment, and stalling investment. And the introduction of further employment rules is adding to employers’ woes.”

Nearly three quarters of the firms which responded said they expected to increase prices over the next three months – a rise of 16% on the previous quarter.

Two-thirds of Shropshire businesses said they now viewed taxation as a ‘fear factor’, while the proportion worried about inflation was up by 10% on the final three months of last year.

The rate of companies looking to invest in plant and machinery fell by 11%, and the percentage of employers planning to invest in training in the coming months fell 7%. 

However, in brighter news, there was a 7% increase in county businesses reporting a rise in turnover, with 12% reporting increased profitability, both up-ticks from the previous quarter.

Shropshire’s results will now be fed into the national survey by the British Chambers of Commerce, which is used by the Bank of England and other relevant bodies and economists.

Ruth Ross, Shropshire Chamber of Commerce’s chief executive, said: “It is clear that there is a very challenging year ahead for many businesses in the county.

“We are committed to lobbying on behalf of Shropshire’s business community, to ensure their voices are heard in the corridors of power.

“And we are here to support and signpost our members to the help and support they need, from finance to human resources, international trade, legal advice, and much more. Together, we are stronger.”