Costs still outpacing turnover for Shropshire businesses - report
Costs are still outpacing turnover growth for Shropshire businesses, prompting many employers to shed staff or scale back on recruitment, according to a new report.
The latest quarterly economic survey, carried out by Shropshire Chamber of Commerce, said many businesses were still feeling the effects of the 2024 Budget which piled on extra staffing costs while wage demands were showing no sign of easing.
The latest survey was carried out before last month's Budget and speculation and uncertainty in the run-up was cited by several employers as having damaged confidence, making customers more wary of spending and reluctant to plan too far into the future.
Only a quarter of companies which took part in the analysis said they had seen a rise in sales over the past quarter and more than 80 per cent said future order levels had fallen.
Fewer than 10 per cent of employers said they expected to increase staff numbers in coming months - one of the lowest levels since the surveys began, the chamber said.
When questioned about 'fear factors' impacting their day-to-day operations, there was a 13 per cent rise in those who quoted taxation and an 11 per cent jump in those who pointed to inflation.
Only 39 per cent of Shropshire businesses think their turnover will improve over the next year although this is still lower than pre-Covid levels.
Shropshire Chamber of Commerce's Quarterly Economic Survey is open to any business in Shropshire or Telford and Wrekin and results are fed into the national survey by the British Chambers of Commerce which is used by the Bank of England and other bodies.
Rosie Beswick, Shropshire Chamber's policy analyst, said: "It is clear from these latest results that there remains a great deal of uncertainty and worry across many sectors of the county's business community."Staffing costs remain a growing burden and many employers are cutting back on recruitment."And many backdoor taxes are continuing to sneak in. Slow payments to businesses also appear to have become a growing issue."
