The Chancellor used her party conference speech to warn of “tough economic choices” ahead, while promising to freeze on Corporation Tax for this parliamentary term and deliver policies that will ultimately boost economic growth.

Paul Cherpeau, chief executive of Liverpool Chamber, says that businesses in the Liverpool City Region need to hear strong policies and an optimistic outlook from the Chancellor before they take crucial investment decisions.

His comments echo the five national policy recommendations recently unveiled by British Chambers of Commerce to encourage investment, strengthen the workforce and develop local economies. These are:

• Create a competitive investment environment by expanding full expensing to leased assets and promoting North Sea investment.
• Support a healthier workforce by reducing the employer and employee tax on workplace health services.
• Engage employers in skills planning by extending investment in Local Skills Improvement Plans and addressing gaps in local training provision.
• Reform business rates, with the aim of lowering the multiplier to 45p by the end of this Parliament.
• Invest in infrastructure by delivering previously planned transport projects, improving rail capacity, and updating planning rules to increase employment land supply.

It has also upgraded its UK economic growth forecast for 2024 three times this year – from a low of 0.4% to an expectation of 1.1%. However, economic growth is currently forecast to remain flat in 2025 and 2026, while fears over increases in taxation on firms, and warnings of tough choices in the budget, are said to have left business leaders wary.

Cherpeau said:

“With inflation now closer to the 2% target and interest rates edging downwards, we have seen a slight uptick in confidence among local businesses in the first half of 2024. However, trade performance remains relatively weak and consumers remain reluctant due to ongoing cost of living pressures, which puts negative pressures on operators in areas like retail or hospitality.

“It’s imperative therefore that the Chancellor leaves businesses with room for further optimism at her first Budget. While it was pleasing to hear her talk of economic growth at the party conference, the Budget will be a golden chance to shape expectations and outline how the government will spur economic growth and investment in our city region, framed within a clear industrial strategy.

“Skills shortages are at the heart of our economic issues, so we need meaningful schemes that will help businesses and education providers to work together to address those gaps and create a healthy, skilled workforce that helps to futureproof our economy.

“Issues such as business rates are long overdue for reform, while greater clarity on road and rail infrastructure would also give some businesses the certainty they need to plan forward.

“We therefore call on the Chancellor to grasp the nettle and give Liverpool city region businesses the confidence they need for the months and years ahead.”