Latest Updates From Surrey Chambers CEO – 14th August 2024
14th August 2024
With a new government settling in it is not surprising to hear of several new policy initiatives. At the same time, we are keeping the government updated on what is happening on the ground with businesses.
The Chancellor Rachel Reeves recently made her first major economic statement to the Commons. Firms will welcome the Government’s commitment to economic growth and will quickly want to get full sight of an industrial strategy to deliver this. Our message remains clear; If businesses succeed, our communities prosper, the economy grows, and the wealth needed to support our public services is created. Companies know that efficient management of public finances and services is a key factor in setting the framework for economic growth. Infrastructure projects inject wealth into local areas and create jobs through supply chains, as well as having a multiplier effect on investment.
This statement fires the starting gun to the Autumn budget, and we will be outlining our submission to Government in the coming weeks. We want to work in partnership with ministers to make the sure the budget maintains the UK’s business competitiveness. The best way to grow our economy is by giving firms the financial headroom to expand. Firms need the capacity to invest in their businesses, workforce, local communities and the wider economy.
Skills
Skills England has also been launched outlining a new government body to work with other advisers to plug the ‘skills gap’ in key sectors. Employers and the economy’s skills needs must remain at the heart of the system. Building on Local Skills Improvement Plans, which we have been delivering locally via the Chamber, will help develop strong partnerships between employers, training providers and others – to ensure people get the skills and support they need. But this will not happen overnight. As we transition to a better planned, high-skilled and high wage economy, we need to ensure firms can access global talent to fill urgent job vacancies. This requires a more efficient and effective visa system that can support sectors of the economy when they’ve tried everything they can to recruit and train locally.
Bank rate
Many businesses heaved a sigh of relief as the Bank of England announced the base rate would be cut to 5% last week. This decision to cut the interest rate gives many smaller firms welcome breathing space and could trigger an increase in investment as borrowing costs decline. This cut, the first since 2020, became inevitable as inflation has settled at around 2% over recent months. The Bank will be monitoring events closely as global conflicts and trade tensions could still exert price pressures on commodities and the finely balanced 5-4 voting split shows this caution. We still hear that inflation remains a top issue for our members, albeit less than at the peak of concern in 2022.
Awards
A busy week for me as I have the Tandridge awards to judge as well as a category of the Surrey Business Awards. After an early readthrough there is no doubt, we have a strong competition on our hands. Meanwhile The Kings Award for Enterprise is still open to enter until 12thSeptember 2024 so it is not too late to apply for recognition. https://www.gov.uk/kings-awards-for-enterprise/how-to-apply
Surrey Chambers of Commerce can be reached on 01483 735540, info@surrey-chambers.co.uk, @surreychambers www.surrey-chambers.co.uk We are always happy to help businesses find what they need to help them grow and prosper.