Shropshire and Telford & Wrekin Businesses Anticipate Closures and Job Losses, Citing “Survival Mode”

A survey conducted by the Shropshire Chamber of Commerce, in response to the government’s autumn budget, indicates that businesses face significant threats and job losses are anticipated in the upcoming year. The poll, which gathered responses from businesses across Shropshire and Telford and Wrekin, revealed that 72% of participants viewed the budget negatively, with not a single employer rating it positively. “We are in survival mode,” stated executives from one hospitality company, who project business closures will occur in early 2025. The BBC has sought a response from the Treasury regarding these findings. The chamber characterized the survey’s findings as presenting some of the most pessimistic outlooks observed since the pandemic began. Alex Brown, a member of the chamber’s policy team, labeled the budget as “business-bashing” and commented: “Increased national insurance (NI) and minimum wage rates alone have prompted businesses to warn of redundancies.” One professional services firm remarked: “We have more taxes to pay, wages, energy and rents costs all increase annually, but we are still in a competitive market, so our charge-out rates can’t keep up.” Furthermore, a construction company criticized the rise in employers’ NI contributions, stating: “Our NI costs are approximately £16,000 up.” The survey data indicated a 14% decrease in businesses reporting an increase in sales. Over 25% of companies observed a deterioration in credit terms, concurrently, approximately one-third reported an increase in bad debts. According to the chamber, 75% of businesses anticipated a decline in turnover, representing a 23% increase compared to the prior quarter. Almost 80% of employers forecasted a reduction in profits. Nevertheless, within the international trade sector, an 11% increase was noted in companies experiencing growing exports, alongside a 16% rise in those anticipating an uptick in future export orders. The chamber, which has slightly fewer than 1,000 members, facilitated an anonymous survey in which hundreds of businesses participated. The survey was accessible to all businesses, regardless of size, located in Shropshire, Telford, and Wrekin. The chamber states that the region is home to 21,500 businesses. For further updates, BBC Shropshire can be followed on BBC Sounds, Facebook, X, and Instagram. Copyright 2024 BBC. All rights reserved. The BBC disclaims responsibility for the content of external sites. Details regarding our external linking policy are available.