Uncertainty over Budget hits confidence among West Midlands small businesses
Black Country business leaders have urged the Chancellor not to hammer small companies during Wednesday's Budget.
Sarah Moorhouse, chief executive of Black Country Chamber of Commerce, said businesses were adopting a 'wait and see' approach before committing to investment, fearing the impact of rising taxes.
A new survey by the chamber showed business confidence had slumped since the general election in July, but was still higher than the national average.
They reported that uncertainty and speculation about the forthcoming Budget had stalled investment by most businesses, affecting forward planning and discouraging them from employing staff.
The survey found that 60 per cent of businesses in the Black Country expected their turnover to increase over the coming year, higher than the national figure of 56 per cent. But the survey also showed that confidence had fallen considerably since the previous one, carried out just before the election, when 71 per cent believed turnover would grow.
Half of the businesses which took part expected profitability to grow over the next 12 months, down from 62 per cent in the summer.
However, confidence is still higher than it was this time last year, when 55 per cent expected turnover to grow and just 45 per cent expected an increase in profit.
