Midlands businesses call for more from government as stifled growth continues

Midlands businesses are calling for the government, ahead of the Spring Budget, to address ongoing issues around costs, skills, taxes and access to capital amid the challenging backdrop, according to accountancy and business advisory firm BDO.

It has just released its latest bi-monthly Economic Engine survey of 500 mid-sized businesses, which showed continued stifled growth and that the region's firms do not anticipate a reduction in corporation tax in the near future.

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More than half (66%) believe the overall tax burden on their business will remain the same between now and 2025/26 and nearly a quarter (23%) anticipate that it will rise.

In addition, cost pressures are set to remain a significant challenge over the next six months, with 50% of firms concerned about higher operational costs, including rent, energy bills and borrowing costs.

"In what could be the last Budget before a general election, the Government has a real opportunity to place growth and the interest of businesses at the centre of its announcement," said Kyla Bellingall, regional managing partner at BDO in the Midlands.

"Time and again, Midlands businesses have called on the Government to act with greater purpose on key areas such as costs, access to capital, and skills.

"However, tax remains a real thorn in the side for regional businesses they want to see more Government resources to help businesses in the mid-market, including within HMRC," she added.

The survey also showed that more than a third of regional businesses (40%) admitted that sourcing new capital from private and public sources was a top concern, with 39% saying they would struggle to expand their business in coming months through entering new markets or increasing their physical footprint.

However, Bellingall did note that the appetite for growth from Midlands businesses remained strong.

"There’s no doubt that trading conditions remain extremely difficult for Midlands businesses, with significant challenges remaining.

"However, with the right support from the Government mid-sized companies in the region will continue to be the driving force behind the UK’s economic recovery," she said.