Shevaun Haviland urges the Chancellor to cut costs as only 17 per cent of firms plan to increase investment

The director general of the British Chambers of Commerce (BCC) has told Greater Birmingham business leaders that the Autumn Budget will be “the real test” of the Government’s support for business.

Shevaun Haviland called on the Chancellor to bring down costs and help firms escape a cycle of risk aversion, speaking as keynote at Greater Birmingham Chambers of Commerce’s (GBCC) Business Growth Studio Conference at IET Birmingham: Austin Court yesterday.

She said businesses still wanted to grow but had been forced onto the back foot.

“The UK does not have a business ambition problem, but it does have a confidence issue,” she said.

“Years of compounding cost pressures and geopolitical shocks have meant we are in that defensive position. Too often the question is not ‘where shall I invest next?’ but ‘what cost is coming next?’”

Ms Haviland pointed to the BCC’s latest Quarterly Economic Survey, the UK’s largest private sector business survey, which shows just 17 per cent of firms plan to raise investment. Inflation is their leading concern, while labour costs are the greatest pressure.

Separate BCC research has found that policy decisions alone have pushed up costs for the average SME by 70 per cent over the past ten years.

“Firms are now experiencing policy as a downside risk rather than opportunity,” she said.

Budget priorities

Outlining what the BCC wants from the Budget, Ms Haviland asked the Chancellor to cut National Insurance for under-25s, reduce energy costs, carry out a full review of business rates and reinstate local export support, which has been scaled back particularly outside combined authority areas.

She said: “We now have a million young people out of work. It’s our job to help them, but it’s government’s job to help us.

“Forty per cent of your energy bills are actual energy. The rest is levies and VAT. The government can do something about that.

“These requests aren’t spending requests, they are growth investments. We will deliver a return on that investment.”

Devolution and exports

On devolution, Ms Haviland said the West Midlands had “serious economic strengths”, among them advanced manufacturing, professional services, logistics, universities and creative industries, but stressed that business needed a hand in shaping local growth plans.

“The Chamber network has been doing devolution for 250 years, so we’re back in fashion,” she said.

“But devolved growth will only work if businesses are in the room early. Local growth plans must be written with employers.”

She noted that only around one in ten UK businesses export, against 40 per cent of Chamber members, calling exporting “the quickest way to grow an economy”.

She also described artificial intelligence (AI) as “the juggernaut that has already arrived in our businesses”, saying it could be “a real leveller” for smaller firms.

Ms Haviland encouraged delegates to share their experiences with GBCC, explaining that member insight feeds directly into the BCC’s surveys and submissions to Government.

“Growth isn’t going to come from one speech, one budget, one programme,” she said. “It takes thousands of business decisions.

“The job of government, the Chambers and organisations like ours is to make your decisions easier, not harder.”

About the conference

Supported by Pioneer partner University College Birmingham, the Business Growth Studio Conference brought together more than 100 delegates for keynotes, workshops and panel discussions on global trade, AI and digital transformation, sustainability, labour market trends and cyber security.

Soho Tavern Group founder Mikey Singh explained how he and his brother Danny grew their Indian gastropub from a single site on Birmingham’s Soho Road into a seven-venue hospitality group operating across the Midlands and Northeast.

Special Olympics GB athlete Daniel Mills and CEO Laura Baxter also spoke about inclusive leadership and building high performing teams.

The conference is part of GBCC’s Business Growth Studio, a programme supporting SMEs across Greater Birmingham with expert insight, practical workshops, peer support and networking.