The British Chambers of Commerce (BCC) is urging the Chancellor to use the upcoming Budget to reduce the rising costs faced by UK businesses. According to the BCC, increasing government-driven costs are damaging business confidence, limiting investment, and slowing economic growth across the country.
The organisation argues that Britain cannot achieve stronger economic growth while the cost of doing business continues to increase. Its campaign focuses on creating a more competitive environment where businesses feel confident to invest, recruit staff, and expand operations. The BCC believes that lowering costs would help unlock growth in every region of the UK.
A key concern highlighted by the BCC is the significant rise in policy-driven business costs. It reports that a typical mid-sized company employing 50 people and generating £5 million in turnover now faces around £1.98 million annually in domestic policy-related costs. This represents an increase of approximately £827,000 since 2016. Factors contributing to these rising costs include higher Employer National Insurance Contributions, increases in the National Living Wage, changes to business rates, and additional compliance requirements.
The BCC warns that these pressures are affecting business confidence and investment plans, with labour costs now being the primary concern for many firms. To address this, the organisation is calling for a Budget that reduces rather than adds to the cost burden on businesses. It has also developed a “Growth Delivery Test” to ensure future government policies support business investment, job creation, and productivity growth.
The BCC’s message is clear: reducing the cost of doing business is essential for driving economic growth, boosting confidence, and helping businesses thrive across the UK.
More information: Budget – British Chambers of Commerce