Lancashire Chamber says Spring Statement 'lacks ambition' as firms face rising costs
Businesses across Lancashire are facing continued economic pressures despite the Government’s Spring Statement, according to the North & Western Lancashire Chamber of Commerce.
The chamber, which represents more than 1,600 companies across the region, said the statement “lacks ambition” and does little to ease the challenges many firms are currently facing.
Responding to the announcement, Babs Murphy said the statement offered little reassurance for the business community.
She said: “While the Spring Statement might serve as a check on the state of the economy, the Chancellor’s speech lacked substance for the business community.
“Confirmation the Office for Budget Responsibility had downgraded the growth forecast for this year will not have relieved any pressures which many businesses are experiencing as they navigate through continuing choppy economic waters.”
According to the latest forecasts from the Office for Budget Responsibility, the UK economy is now expected to grow by 1.1 per cent in 2026, down from a previous estimate of 1.4 per cent.
Murphy said businesses are also facing workforce challenges, warning that youth unemployment and falling apprenticeship numbers could affect the future labour market.
“With youth unemployment at a five-year record high and a 40 per cent drop in the uptake of apprenticeships, the Government risks losing an entire workforce generation,” she said.
“Many Chamber members are feeling the effects of recruiting staff whilst feeling the pinch of the rise in national insurance contributions introduced last year.”
Murphy added that some businesses are being forced to pass rising costs on to customers, while others are having to make difficult decisions about their workforce.
“Many businesses continue to struggle and some are having to pass on the costs of running their companies onto customers, with some having to make hard decisions which will affect their workforce,” she said.
Murphy also argued that the statement focused too heavily on short-term fiscal measures rather than long-term economic reform.
“Overall, the Spring Statement lacks ambition and has insufficient focus on long-term growth strategies,” she said.
However, the Government said the Spring Forecast shows its economic plan is delivering improvements for households and the wider economy.
The Treasury said forecasts show inflation, borrowing and debt interest are all falling, while investment is rising and living standards are expected to improve.
According to the Government, the Office for Budget Responsibility forecasts that people will be more than £1,000 a year better off after inflation by the next election, while borrowing is set to fall and the UK economy is expected to grow over the course of the Parliament.
The Chancellor said the Government’s approach is designed to provide stability in public finances while investing in infrastructure and reforming the economy to support long-term growth.