• Swindon & Wiltshire Economy
• Tuesday October 15 2024
• Author Name: Peter Davison

Taxation one of major worries for Thames Valley businesses, suggests Chamber of Commerce survey

The possibility of tax increases is playing on the minds of business owners in the Thames Valley, according to the latest Quarterly Economic Survey from Thames Valley Chamber of Commerce.

While inflation was still the top worry of 47 per cent of business owners, taxation has entered the race at number two, with 42 per cent of respondents to the survey saying they were concerned about new or higher taxes.

Businesses in the Thames Valley Chamber of Commerce region, which includes Berkshire and Swindon, were polled between August 19 and September 16 – after Labour won its general election landslide but ahead of the Budget on October 30.

Paul Britton, CEO of Thames Valley Chamber of Commerce, said: “Taxation has emerged as a key external pressure, signalling the importance of fiscal policy adjustments to support business resilience.”

Sue Staunton, managing partner at James Cowper Kreston, which helped crunch the numbers, said: “It is therefore not surprising to see concern from respondents about taxation and the impact of measures that might be introduced by the government.”

Overall respondents reported confidence in their own business outlook, as well as the general economy.

Nearly three quarters of businesses (72 per cent) said their turnover had increased, and 56 per cent said profits were up in Quarter 3. Only five per cent reported a decline in turnover, and 10 per cent reported a dip in profitability.

Fifty two per cent of respondents said UK sales had increased over the quarter, while 44 per cent said orders had increased.

Forty five per cent said cashflow had increased over the period, while 16 per cent said cashflow had decreased.

Half (50 per cent) of respondents saw the size of their workforce increase – compared to 42 per cent in Quarter 2 – with only seven per cent making staff cuts.

Forty five per cent said their workforce would increase in the next quarter, with just three per cent planning to shrink the size of their workforce.

Over a third of businesses had invested in new plant or machinery, while just under a third said they had increased spend on staff training.

The Chamber called on the government to deliver a “comprehensive package of measures designed to boost confidence, address cost pressures, and remove the barriers holding businesses back.”

Paul Britton said: “With a new government holding a strong majority and a clear mandate for growth, it is essential that they focus on addressing these economic challenges in both the short and medium term.

“The Chamber will remain steadfast in advocating for our members and seeking answers that reflect the needs of the business community, ensuring that their voices are at the heart of policymaking.

“The region’s growth potential is immense, and we must capitalise on this opportunity to ensure long-term economic recovery and expansion.

“Our hope is that the optimism reflected in this report translates into tangible growth, helping businesses, and our wider economy to flourish.

The local figures have been fed into the national Quarterly Business Survey from the British Chambers of Commerce – Britain’s biggest and longest-running private business survey.

The survey, a leading indicator, often picks up changes in the economy long before other surveys and official statistics and consistently mirrors trends in official data.

It remains closely watched by both UK Government and the Bank of England.

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