Business Confidence Crumbles in the Wake of the Autumn Budget
January 13, 2025
Business confidence among Cambridgeshire companies has taken a sharp hit following the Chancellor’s Autumn Budget, according to the latest Cambridgeshire Chambers of Commerce Quarterly Economic Survey (QES). With 166 respondents (67.5% from the service sector and 32.5% from the manufacturing sector), the Chamber’s Q4 survey unveils critical challenges and a worsening feeling across the regional business community.
Key Findings from the QES:
- Taxation Concerns Surge
Over 70% of firms in Cambridgeshire cite taxation, including National Insurance, as a significant concern – the highest recorded in years. Both manufacturing and service sectors express frustration over escalating tax burdens as profitability shrinks. - Recruitment Flatlines
Businesses report stagnant recruitment activity, economic pressures and costs are forcing many firms to halt hiring plans entirely. - Decline in Investment and Profitability Expectations
Just 13% of firms indicate increased investment in Q4, compared to the previous quarter. Profitability outlook has similarly declined, with businesses struggling to offset rising costs.
The Cambridgeshire Chambers of Commerce QES has called attention to concerns across industries such as manufacturing and hospitality, some of which are already hampered by inflation, interest rates, and a gloomy economic landscape. As a manufacturing respondent noted: “Increased costs across the board, coupled with the new National Insurance hikes, are hitting profitability hard. Without reforms, we simply cannot maintain our current workforce or investment plans.”
Charlotte Horobin, CEO of Cambridgeshire Chambers of Commerce, said:
“The knock to business confidence following the Autumn Budget is clear. Taxation is a noticeable concern for the business community, alongside increasing costs to employment. Early signs show that investment is already being hindered, and recruitment has come to a halt. Without urgent Government action to ease the pain on businesses, the challenging economic landscape will get worse before it gets better.”
The Chamber is hosting the event: An Afternoon with Andy Haldane: Exploring Good Growth for Cities. The event will see Haldane, Chief Executive at RSA and Former Chief Economist at the Bank of England, discuss what ‘good growth’ could mean for the local region. The event will delve into strategies for sustainable economic progress and provide an opportunity for businesses to voice their concerns and explore solutions.
Event details: 18 February 2025, 2.00-4.00pm, St John’s Innovation Centre, Cambridge
How to book: https://afx.one/04cd601b
Read the full QES Report for Quarter 4 here > QES Q4 2024
See how the Cambridgeshire Chambers of Commerce can help your business here > Chamber support for local business – Cambridgeshire Chambers of Commerce