Suffolk Chamber statement on the Spring Statement 2025

The Spring Statement appears to offer little immediate comfort to a Suffolk business community about to face a flood of new business taxes from next month onwards. Suffolk Chamber’s Quarterly Economic Survey for the first three months of 2025 will be released next week, but an initial heads-up at the results suggests that business activity and sentiment is way down on previous periods.

Whilst Suffolk businesses are incredibly resilient and can adapt to most challenges, the role of this Government from now on must be twofold in order to allow companies to bounce back quickly and sustainably. Firstly, to outline a wider tax roadmap, which includes national insurance and business rates, giving firms a clearer idea of when costs will be lowered.  The Spring Statement arguably under-achieved in this regard.

Secondly, business confidence will be boosted by seeing key infrastructure projects such as Ely/Haughley rail junctions approved in the Spending Review in June. Suffolk Chamber is hopeful that the advocacy work and commitment of all our MPs, MPs from neighbouring counties and indeed so many other local and regional stakeholders, will stand us in reasonably good stead. We will see.

However, the OBR forecasts for the years beyond this one suggest a more optimistic growth scenario over the medium-term, which will certainly give some heart to local firms to ‘hang in there’. Also, the national pivot towards expanded housebuilding and boosted defence spending may offer procurement opportunities for Suffolk SMEs. This Chamber looks forward to playing a key role in helping firms prepare for these opportunities.

We are also encouraged by the news that the Government is publishing a consultation on R&D tax credits to help reduce error and fraud, provide certainty to businesses, and improve the customer experience. This has been a key Suffolk Chamber campaign for a while now.