Childcare costs and energy bills are top priorities to aid economy

MAKING childcare more affordable and encouraging investment in growth and energy efficiency should be top priorities in this week’s Budget, say business leaders.

The British Chambers of Commerce (BCC) has called on Jeremy Hunt to take the opportunity to relieve cost and recruitment pressures on business, so the UK economy can prosper.

It comes after a survey of more than 1,000 companies found that business confidence is as low as it was during the pandemic.

Two-thirds of firms were planning to raise prices due to cost pressures, with only one in three expecting their profits to increase this year and 36 per cent expecting a decline.

The BCC wants the Chancellor to focus on easing pressure in the labour market by making childcare more affordable, reforming the business rates system and providing funding for businesses to become more energy efficient.

Shevaun Haviland, BCC director general, said: “Our snapshot of the state of play for business sets out why the Chancellor must act to fuel investment.

“We know we have a tough year ahead,” she said.

“With costs piling up on their doorsteps and so much uncertainty on Government policies, there is little incentive for firms to risk either their dwindling cash reserves or fresh loans on new projects.”

The Federation of Small Businesses has called for urgent action to help struggling firms cope when Government relief on their energy bills finishes at the end of this month.

It is warning that more than a quarter of small firms will have to close or downsize if their bills soar again in April.

And the Confederation of British Industry has urged Mr Hunt to introduce a permanent investment deduction of tax to offset the rise in corporation tax from 19 per cent to 25 per cent from April 1.

‘We know we have a tough year ahead’