Disappointing Spring Statement with nothing to ease cost pressures on business

26 March 2025

It was a disappointing Spring Statement for business – there was nothing about long-promised business rate reform or any move to revisit the unpopular National Insurance increases for employers.

Businesses are feeling battered and bruised by the heavy cost pressures which are looming within days. From next week, firms face higher national insurance and minimum wage bills, coupled with the impact of further US tariffs.

The growth forecast has been halved for the coming year from 2% to 1% – a vibrant economy relies on investment from businesses to grow but with increased minimum wages and tax burdens, businesses are putting investment and recruitment on hold.

However, the support announced to get the economically inactive back into work is to be welcomed. We are working with Somerset Council to help shape a new programme of support to help businesses employ those who are unable to work due to care or health challenges.

People are our greatest asset but like many areas across the country, but all too often, the skills these economically inactive people could bring to the workplace are being lost because the right support to enable them to work just isn’t there.

With the right package of support for employers, it is hoped hundreds of people could get back into, or stay in, work in Somerset, boosting the economy and helping local businesses fill their vacancies.

The commitment to the Planning and Infrastructure Bill is also to be welcomed. Tackling the UK’s worn-out infrastructure will encourage growth. It is imperative that we put our economy on the front foot, so we can compete in an increasingly competitive and protectionist world.

But business must be fully involved in this process at the local, regional and national level to make it work effectively and Somerset Chamber will continue to lobby on behalf of its business community.