Birmingham's Confidence in the Economy Needs a Boost

Tensions amongst the UK’s business community are at an all time high in anticipation of the Chancellor’s Autumn Statement, due out tomorrow.  It is hoped that there will be a significant reduction in red tape, as well as tax incentives for businesses of all sizes.  Doubt, placed by the majority, on the future of the UK’s economy is the biggest factor affecting growth and the chances of recovery.



On Friday last week, it was reported that the Birmingham Chamber Group’s general consensus was that growth is being stifled due to small businesses deciding not to hire new staff in light of the uncertainty surrounding the economic future of the country.  The group also called for changes to employment regulations to encourage small to medium sized businesses to recruit new staff.

Head of policy and strategic relationships at Birmingham Chamber Group, Katie Teasdale said: “We know of small businesses that want to expand, and would benefit from expanding, who are reluctant to take on the extra staff because of the red tape and regulation it would involve.
“When they don’t know what the future holds they are reluctant to take on the extra responsibilities.”

Industry Boost for Birmingham

Another significant factor in ensuring the UK economy recovers enough to grow in 2012 is the issue surrounding the level of youth unemployment.  This is particularly significant in the Birmingham area which has experienced a 62% increase since January this year: there are approximately 4,775 18 to 24 years olds who have been unemployed for 6 months or longer.

The construction industry in the West Midlands is also facing its own challenges with respect to the number of affordable homes being built in the area, in the past 6 months: a noteworthy drop of 80% compared to the previous 6 month period.



It is hoped however, there is some positive news to be brought to light in the Chancellor’s announcement tomorrow, in particular with respect to the country’s infrastructure.  New projects are expected to receive a cash boost from funds which are currently sitting idle in private sector insurance and pension schemes.  This, coupled with the introduction of the already announced Youth Contract Scheme will hopefully provide an increased level in confidence in the Birmingham area.

The pressure is well and truly on Mr Osborne to produce measures whereby small businesses have access to credit, bureaucracy is reduced, industry is supported through tax incentives and subsidies, as well as producing an increase in economic confidence.

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