BUSINESSES continue to face mounting challenges as concerns of further increases in taxation and inflation continue to surge, according to the latest Quarterly Economic Survey results from Northamptonshire Chamber of Commerce.
The data, collected from a variety of businesses across the county, shows that nearly 75% of the respondents have highlighted further taxation increases as their number one concern as businesses face economic challenges.
They also highlight inflation as a growing concern, with more than 58% of respondents saying that they are concerned about the potential that prices of raw materials, goods and services will rise, leading to higher costs for raw materials, wages, and overhead expenses.
This can squeeze profit margins, force price increases, and impact consumer demand, they fear. It also affects interest rates, borrowing costs, and investment decisions.
While concerns about competition have eased by almost 50% on Q4 2024, the survey’s findings indicate that businesses may be focusing more on financial pressures rather than market rivalry.
As companies brace for the challenges ahead, Northamptonshire Chamber of Commerce is calling on policymakers to address the growing concerns from local businesses over taxation and inflation to prevent further strain on businesses.
The Chamber’s head of policy Simon Cox said: “Rising taxation is putting significant pressure on businesses of all sizes and, without intervention, we could see a slowdown in investment and growth.
“With economic uncertainty on the rise, businesses will need to adapt and seek strategies to navigate the shifting landscape in 2025.”
The latest Quarterly Economic Survey for Quarter 1 can be found here.
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