This comes ahead of the chancellor’s upcoming Budget, according to the latest British Chambers of Commerce (BCC) Quarterly Economic Survey.
The survey – conducted by the BCC in partnership with chambers across the UK, including Cumbria – shows a lack of optimism among businesses and little evidence of improvement in economic conditions.
Suzanne Caldwell, managing director of Cumbria Chamber, said: “Businesses need certainty and a long-term strategy, not more ad hoc policy shifts.
“And business cannot be expected to bear the brunt of funding spending plans, while also being forced to increase wages, as happened in last year’s Budget.
“We need to be enabled to grow and flourish – and in turn contribute through part of that prosperity – not be continuously battered.”
Nationally, less than half (48 per cent) of firms expect turnover to rise in the next 12 months, and just 21 per cent have increased investment. The same proportion – one in four businesses – have cut back on investment, while 54 per cent have kept investment levels unchanged.
Tax and inflation remain top concerns, cited by 59 per cent and 57 per cent of businesses respectively.
Ms Caldwell said: “With the rest of the national Chamber network, our message to the Chancellor ahead of the Budget is clear – no further tax rises on business.
“SMEs specifically are calling for urgent action to tackle skills shortages, a bold push to boost exports, and more investment in infrastructure.
“Without that, confidence could deteriorate further, putting economic growth at risk.”
The survey data highlights serious pressures facing businesses, particularly in Cumbria, where Ms Caldwell said feedback was ‘overwhelmingly negative.’
She warned that ongoing investment and growth are ‘very vulnerable’ to decisions in the upcoming Budget.
The report also revealed that just 32 per cent of businesses have seen an increase in domestic sales, with only 24 per cent reporting improved cash flow in the past quarter.
Looking ahead, 44 per cent of firms expect to raise prices in the next three months, largely due to rising labour costs, which are the main cost pressure for 72 per cent of businesses.
This figure rises to 80 per cent in the hospitality sector and 78 per cent in transport.
