It’s been tough news for business lately, but hopefully there are some bright spots in the gloom.
The Q3 Business West Economic Review reported some improved sentiment among businesses, while finding appropriately skilled staff remained the key challenge. We will see if this changes after the recent Budget. Increases in National Insurance and other taxes were the highest profile measures, overshadowing a reduction in Business Rates for some sectors and increased support for skills development.
At 2.8% Gloucestershire had a somewhat lower than average unemployment rate than nationally (4.4% in October). However, with anaemic economic growth and the cost of changes to workers’ rights, the outlook for employment, in the private sector at least, looks less than rosy. Major retailers have already issued stark warnings.
The British Chambers of Commerce (BCC) has responded to “a tough Budget for business” calling on the Government for “decisive and inclusive action at pace … to unlock investment. A lot is riding on the detail of the industrial and trade strategies in the months ahead.” They see pensions reform as a key opportunity to increase relevant investment.
The picture for those trading internationally is also mixed. Aside from the uncertainty raised by the President Elect’s views on tariffs, exports have struggled of late. Although there are bright spots in the service sector – which now accounts for about 80% of the British economy. BCC has published a survey showing that “Brand Britain” is still a huge asset in global markets – even if jaGUar (sic) disagree – and are lobbying hard for improved ties with the EU. (42% of UK exports compared to 21% for the US)
For those engaged in international trade, the Business West website may offer some useful guidance.
Your Chamber plans to host an update on the economy from the Bank of England, early in 2025, in collaboration with Business West. Details will be on the website soon.
We regularly engage with the Gloucester Economic Growth Board and Borough Council on issues affecting the local economy and we are working to promote stronger ties between business and education to promote relevant skills, for example with the Cyber Boot Camps .
In slightly brighter local news, the new Government has confirmed the £20m levelling-up funding for the Golden Valley and new plans have been submitted for a further element estimated to be worth over £100 million to the local economy, creating up to 250 new jobs.
Helping local businesses benefit from the supply chains these developments create is a priority for the Chamber.
