THE LATEST economic survey conducted by Milton Keynes Chamber of Commerce highlights key challenges faced by businesses as the economic landscape continues to shift.
While firms remain resilient in some areas, the findings underline growing concerns around taxation, workforce dynamics and investment.
Nearly 20% of businesses reported a decrease in domestic sales since the last quarter’s survey, and export sales experienced a similar decline, with 21% of firms indicating reduced activity.
Workforce figures have remained stable, but fewer firms expect workforce growth in the next three months, with many anticipating potential reductions. Cashflow pressures have increased compared to the last quarter, reflecting tighter economic conditions, while plans for investment in plant and equipment have slowed, signalling cautious business sentiment.
Despite these challenges, however, there are signs of resilience with businesses largely expecting stable turnover and many respondents report operating at full capacity. Additionally, 41% of firms expect to increase their prices, driven by rising labour costs, utilities, and overheads.
One of the most key findings of the survey is the sharp rise in taxation concerns. 71% of respondents are bracing for further taxation announcements in the Spring Statement, a significant increase from just 29% expressing such concerns 12 months ago. This heightened focus on taxation reflects shifting priorities among business leaders.
Concerns around inflation and interest rates have eased, suggesting firms are adapting to previously volatile economic conditions.
Milton Keynes Chamber of Commerce is calling on policymakers to address these pressing issues in upcoming announcements and policy making.
Its head of policy Simon Cox said: “Businesses are grappling with a challenging mix of reduced sales, cashflow pressures, and concerns over taxation. It is vital that the Spring Statement delivers clarity and support to enable firms to navigate these hurdles and drive future growth.”
“The Milton Keynes Chamber of Commerce remains committed to advocating for businesses and ensuring their voices are heard in shaping the regional and national economic agenda.”
The latest Quarterly Economic Report will be published in January 2025. For more information, contact policy@chambermk.co.uk.
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