Ease the burden on business to get unemployment down further says Warwickshire business leader

A leading business figure in Coventry and Warwickshire says the Chancellor should ease the cost burden on firms in his Budget if he wants to make a serious dent in unemployment figures.

Unemployment fell in the three months to August to 4.7 per cent but job vacancies have also declined too.

Corin Crane, chief executive of the Coventry and Warwickshire Chamber of Commerce, said: “We’re pleased to see unemployment fall slightly and it once again underlines the resilience of businesses in the face of so many pressures.

“We have just completed our latest round of business forums across the city and the county and businesses are still telling us that costs are holding them back from investing in that new piece of kit or taking on that extra business.

“I spoke to a firm in hospitality who would like to open up on Mondays and Tuesdays because they are busy during the rest of the week but the additional employment costs – on top of energy and taxation – have put them off.

“So, the Chancellor must use his Budget to back business, cut costs and deliver growth for the economy.”

Patrick Milnes, head of people and work at the British Chambers of Commerce, said: “While it’s welcome that unemployment eased slightly in the three months to August, the jobless figure remains stubbornly high at 4.7 per cent.

“With the number of vacancies falling further, urgent action is needed in the Budget to change the dynamics around hiring.

“Businesses are suffocating under a mountain of costs which means expansion plans are being put on hold and young people are missing out on job opportunities.

“Our latest research shows labour costs are the top pressure for businesses, cited by 69 per cent of firms.

“The BCC's most recent economic forecast suggests youth unemployment could hit 16.6 per cent by year end, as firms creak under the pressure of high employment costs.  

“The Chancellor must take a bold approach in his Budget, next week. Any further tax increases on business would be calamitous for growth and jobs. 

“Instead, he must pivot to easing the cost burden. That means cutting employer National Insurance contributions for all under-25s.

"He must then go further with a targeted tax reduction package to ease energy and business rate pressures for all firms.”