Despite recent proposals from the Chancellor to stimulate growth, businesses in the East Midlands are sceptical. The region’s inflation rate surged to 3.6% in June, exacerbating already fragile business confidence, as reflected in the latest Quarterly Economic Survey.
In the Mansion House speech, the Chancellor outlined measures intended to ease business operations, including reducing regulatory barriers to encourage risk-taking, streamlining recruitment processes for senior leaders, and offering a concierge service to assist companies wishing to set up in the UK. However, local businesses remain unconvinced.
East Midlands Chamber has pointed out that while the measures may benefit certain sectors, they fall short of addressing the underlying challenges faced by businesses. The rising inflation, alongside increased operational costs such as higher National Insurance contributions and the national living wage, continues to put pressure on firms.
In a climate where many businesses are anticipating no growth, the Chancellor’s plans may not be enough to restore confidence or encourage the much-needed investment. As the economic outlook remains uncertain, business leaders are calling for stronger, more immediate support, including assurances that future tax hikes will not further hinder their operations.
