The Black Country Chamber has released it’s ‘quarterly economic survey’ results
Latest figures reveal two thirds of business owners in the Black Country ‘can’t sleep at night’ over worries about tax rises and inflation.
Each quarter, the Black Country Chamber of Commerce completes an economic survey with local businesses. They find out how recruitment, sales, business confidence and resilience looks across the patch.
What tax rises are businesses worried about?
This month (April), rises in the minimum wage and National Insurance contributions will hit local businesses.
National Insurance will go up from 13.8 per cent to 15 per cent in April.
Meanwhile, the National Living Wage will increase by 6.7 per cent to £12.21 per hour for over-21s and £10 for 18-21 year olds.
“The government needs to listen to us, in terms of giving us a bit of breathing space”
The Chief Executive of the Black Country Chamber of Commerce, Sarah Moorhouse, said the tax rises were putting ‘constant pressure’ on business owners.
“It is not a case that our businesses do not want to pay tax, they just would prefer if it did not come all in one go.
“They are worried they cannot pay the rent or their employees bills. There are huge pinch points with our local businesses.
“The government needs to listen to us, in terms of giving us a bit of breathing space,” she said.
What else do Black Country businesses say?
The quarterly economic survey results show Black Country businesses are still recruiting, despite the pressures they are facing.
48% of Black Country firms attempted to recruit over the past quarter, up from 47% in the final quarter of 2024.
Sarah Moorhouse said she was pleasantly surprised that businesses were also continuing to invest:
“Cashflow has increased for 26% of firms while investment plans have increased for equipment and training for 19% of Black Country businesses.
“I think it is really positive. Clearly for some of our businesses spending has not completely stopped,” she said.
What do the government have to say?
A government spokesperson said: “We are a pro-business government, and we know the vital importance of small businesses to our economy and have already achieved a great deal in a short period of time.
“Including protecting the smallest businesses from the employer National Insurance rise and late payments, protecting 250,000 retail, hospitality and leisure business properties from paying full business rates and capping corporation tax.
“We delivered a once-in-a-Parliament budget that took necessary decisions on tax to stabilise the public finances, including the NHS which has now seen waiting lists fall five months in a row.
“We are now focused on creating opportunities for businesses to compete and access the finance they need to scale, export and break into new markets.”
