Shropshire wish list: What county businesses are really hoping for in the Budget

Mike Goodall, development manager at the Federation for Small Businesses in Shropshire and Herefordshire, said an 'ambitious but achievable programme' can help alleviate challenges.

"It’s very tough out there," he said. "The Federation of Small Businesses’s research shows local small business confidence has been in negative territory for seven straight quarters, due to the energy price crisis and the knock-on impact on the cost of doing business.

"The Government needs to foster an environment where small firms can grow, to the overall benefit of the economy, and to put this period of stagnation and shrinkage behind us once and for all.

"Uprating the Employment Allowance to keep it in line with recent raises in the National Living Wage, raising the VAT threshold from £85,000 to at least £100,000, bringing back tax-free shopping for overseas visitors, ensuring the future of the Recovery Loan Scheme to get funds to start-up and scale-up businesses, and bringing in a national Business Energy Advice Service to help small firms with eye-watering energy costs would all provide a launchpad for growth.

"With the right support, our small firms have the drive and the potential to get the economy back up and running, and to put this period of economic decline firmly behind us."

Last week, Shropshire Chamber of Commerce called for Chancellor, Jeremy Hunt, to develop a ‘sustainable growth plan’ by working in partnership with business.

Calls include commitment to fund business-led Local Skills Improvement Plans (LSIPs) beyond the current 2025 cut-ff point to at least 2028 and to restart the VAT registration review with a view to removing the existing cliff edge.  Further calls include reforming business rates to make it a tax that incentivises growth and introducing a new internationally competitive tax-free shopping scheme.

Ruth Ross, chief executive of Shropshire Chamber, said: “Businesses are wrestling with many challenging issues right now and they want to see a clear vision.

“Through our work on the Local Skills Improvement Plan for the region, we know that attracting, retaining, and developing people with the right skills is crucial for business – but far too many employers are struggling to do that.

“Our own research, alongside that of the BCC, also reveals that many small firms are struggling because of business rates, while others are limiting their expansion plans because of the VAT threshold.

“We believe the Chancellor should use his statement to announce plans to make rates fairer.”

A Shrewsbury lawyer, meanwhile, urged the Government to choose National Insurance reduction over an Inheritance Tax cut.

Clive Pointon, head of wills, trusts, and tax at legal firm Aaron & Partners, said:  “The Spring Budget will likely see the Chancellor face even more pressure to announce tax cuts, and address rumours around changes to Inheritance Tax.

“The Conservatives share a similar stance on income tax with Labour and have made several recent changes to Capital Gains Tax. This leaves Inheritance Tax as the obvious issue to use to distance themselves from their political rivals. Whether a change that benefits those with capital in excess of £1m is a vote winner is another matter.

“There has been speculation suggesting a reduction from the current 40 per cent rate. However, as the UK has officially entered a recession, any future tax landscape is an uncertain one. As such, we recommend to act now while we are in a climate we understand.

“A positive change would be to action a further reduction of National Insurance for both employers and employees. It feels counter-intuitive to tax jobs in the midst of a productivity crisis.”