Chambers want £4.2bn boost to create jobs and growth

The British Chambers of Commerce said the Chancellor should use spending “wiggle room” to bring forward changes it believed would stave off stagnation.

The chambers said next week’s Budget should include a number of initiatives, including scrapping planned increases in business rates, introducing a capital allowance scheme for medium sized firms, and doubling the amount of money available for wage subsidies for firms taking on young people. Ahead of its annual conference on Thursday, the BCC also called for increased airport capacity in the South East, reform of the planning system and de-regulation of the labour market.

Director general John Longworth said: “George Osborne faces one of the most challenging Budgets in recent years. He can either take bold steps to create growth in the economy by introducing measures to support business, or shy away and face the spectre of economic stagnation. He has to pull out all the stops to boost British business by providing them with a Budget for growth.

Meanwhile, a report by the Federation of Small Businesses showed that confidence in smaller firms had improved in recent months despite rising overheads and continued problems accessing new finance.

A survey of over 3,000 companies showed confidence increasing for the first time in a year, with over half planning to grow in the coming year.

Chairman John Walker said: “It is a testament to the hard work and determination of the UK’s small businesses that, in the face of rising costs and falling demand, they are still more confident about the year ahead and are looking to expand.”