Businesses eye Spring Statement for aids to growth

Investing in skills, making exporting easier, reforming business rates and controlling employment costs.

Four of the priorities Hampshire Chamber of Commerce has said need to be considered by the Chancellor, Rachel Reeves in her Spring statement.

The speech later today is where the Chancellor updates us on the state of the economy.

Businesses in Hampshire have been telling us how they're feeling.

Thomas Laird's company Salt of the Earth was started in a kitchen and spare bedroom by his mum more than thirty years ago.

Now, they make 80 different types of natural deodorant in their factory in Chandlers Ford and employ 25 people.

Laird said his priority is tax stability to encourage further investment but says that will only happen if businesses feel confidence.

"A boring statement would be good" he added.

He also wants to see exporting to Europe and the world made easier.

"We now sell products to 35 countries, but it was much easier when we started out. Now there is a double set of regulations and I worry that similar businesses in a similar situation nowadays will just not bother which affects their ability to grow and the wider economy".

Fergus McMurray owns Baffled Coffee in Southsea, with three premises - a café, kiosk and deli.

He says the impact of increasing employment costs is seriously impacting the hospitality sector and he's not replaced three members of staff who left before Christmas.

He's worried that it's not making financial sense to take on 18-21 year olds who will soon be paid the same as an older staff member, due to increases in the minimum wage.

"We are often their first job, the first time someone who is not a teacher or parent has told them what to do or given them criticism. They need a lot of coaching about the work environment and if we're going to see costs go up to do that, we won't do it".

He says a cut in VAT would really help the industry and give it an immediate confidence boost.

Ross McNally represents hundreds of different businesses in the Solent region as chairman of Hampshire chamber of commerce.

He says the "long overdue" reform of business rates is essential, to make the system fairer.

"We call on the chancellor to extend the business rate relief already announced for pubs and music venues so that it applies to the wider hospitality, retail and leisure sectors. That would be a massive boost for many beleaguered operators".

Mr McNally admitted the "unfortunate" war in the Middle East could benefit the large number of defence companies in Hampshire and the Solent region.

But he added investment in skills training in these sectors was essential to help alleviate growing youth unemployment.

"One in six of our young people aged 16 to 24 is out of work, higher than the EU average for the first time in a quarter of a century. We need to close the skills gaps that constrain sectors such as digital, engineering and green tech."

The Spring statement will be delivered in the House of Commons just after midday.