Latest Updates From Surrey Chambers CEO – 8th January 2025

8th January 2025

Whilst Surrey Chambers of Commerce has hit the road running in 2025 with many exciting events in place to help businesses to learn and connect, the business environment is looking quite challenging. Keep an eye out for some exciting new events to help you grow your business as well as many topical events and networking opportunities. Although there are some challenges on the horizon mainly around cost hikes and recruitment, we will be keeping the updates and support coming to help you be as successful as possible.

What does the data and business feedback tell us?

The latest labour market data showed that pay growth has picked up for the first time in more than a year. This is a concern for businesses as they continue to grapple with the huge increase in employment costs announced in the autumn Budget. Higher employer National Insurance Contributions and an increase in the national living wage from next April, means firms are facing difficult decisions. Following the results of the Quarterly Economic Survey, run by the network of Chambers, many say they will have to raise prices, put recruitment and investment plans on hold and look for other ways to reduce their costs.

Some highlights from our survey were:

• 63% of businesses say tax, including national insurance, is now a concern, following the Chancellor’s Budget – the highest level since 2017
• Business confidence has slipped to its lowest level since the aftermath of the mini-Budget in Autumn 2022
• A majority of firms (55%) now expect prices to go up in the next three months, with labour costs the biggest driver 

The Government is rightly coming up with long-term strategies on industry, infrastructure and trade. But those plans won’t help businesses struggling now. Business stands ready to work in partnership to make the proposed Employment Rights legislation work for all, but the current plans will add further costs on firms. To help business we need to see quick action in three specific areas. Firstly, ministers should accelerate business rate reform to create a system that incentivises investment. We also need the Government to speed up infrastructure investment, to help SMEs in supply chains across the country. Finally, it’s crucial to support exports, prioritising a better trading deal with the European Union.

Trade agreement with Europe (The Trade and Cooperation Agreement)

The Government has said economic growth is its number one priority but if that is going to happen then we need to export more, and the EU is still our biggest market.  The structural trade problems created by Brexit have not eased and, in many respects, they are getting worse as EU and UK rules and regulations head in different directions. The Government has talked a lot about a new era of trade relations with the EU. Our businesses are clear on what they want to see, less paperwork and bureaucracy, greater flexibility on business travel and a balanced Youth Mobility Scheme between the UK and EU. There is no time to lose in driving forward the changes we need to see and we continue to lobby government with our proposals.

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.