Businesses in the East of England are calling for the Chancellor to announce new measures to help with rising costs ahead of his Spring Statement on 23rd March, according to a recent survey from Lloyds Bank.
As inflation hits the highest levels seen since 1992, more than a third (36%) of businesses said that direct help with energy bills and rising costs tops their wish list for the Chancellor. This was followed closely by calls for a reduction in VAT, cited by one in three (34%). Funding to help create new jobs and develop skills was top of the list for one in five (20%).
Rising prices remain a key challenge for businesses. Over a quarter (28%) of respondents said they are concerned about having to increase the costs of goods and services and more than one in five (22%) stated that inflation is reducing profitability. More than one in 10 (11%) said rising prices had caused them to worry about having to scale back their operations and a similar number (11%) were pausing expansion plans.
To help specifically with rising prices, businesses in the East of England are asking the Chancellor for tax holidays or tax-incentives (34%), measures to cut red-tape (29%) and grants to support investment in energy saving measures (24%) to help tackle increasing costs.
The data comes as businesses face continuing supply chain challenges, which are causing hikes in freight costs (47%) a reduction in the availability of stock (46%), and disruption through increased border controls and customs regulations (25%).
Dene Jones, regional director for the East of England, SME & Mid Corporates at Lloyds Bank Commercial Banking, said: “Rising prices are causing multiple challenges for businesses in the East of England and the pressure from inflation shows no sign of abating in the near-term. We’ve made significant progress as a region in recent months, but firms are clear they need help from the Chancellor now to preserve their ability to invest, grow and support the East of England’s continued economic recovery in future.”
