Bosses in the South West are calling for more certainty on taxes to help stimulate growth ahead of the Autumn Budget.
Nearly a third (30%) of firms in the region want assurances from the chancellor that full expensing capital allowances - a type of tax relief for businesses on equipment, machinery and vehicles - will remain for the life of this parliament.
According to the research by business advisory firm BDO, 27% of businesses would also like to see the Treasury replace the apprenticeship levy with a more simple growth and skills levy.
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The news comes ahead of the Budget which will see Rachel Reeves attempt to fill a fiscal black hole of some £40bn. Her address to parliament on October 30 is expected to includes hikes in taxes and cuts in spending as a result.
David Brookes, regional managing partner at BDO in the South West, said: “What many South West businesses would most like to see at next week’s Budget is a clear business tax roadmap which provides predictability and stability to allow them to plan ahead with confidence."
BDO's Economic Engine survey of 500 mid-sized businesses found that regulatory changes to improve access to capital and simplifying the listing process for the London Stock Exchange would also be welcomed.
“Our own manifesto for mid-sized businesses outlines measures to enable these businesses to succeed," said Mr Brookes. "Amongst other asks, it calls for the government to create a cross-party commission on tax to develop pragmatic solutions to key fiscal matters, and ensuring mid-sized businesses have the skills pipeline they need to grow and expand.”
Looking ahead to future growth ambitions, BDO's survey found that nearly a third of South West businesses (30%) intend to prioritise exporting in the next six to nine months. Nearly a quarter (23%) are also planning to invest in research and development, such as new technologies.
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But firms also indicated ongoing workplace issues such as changes to regulation, which is creating uncertainty around skilled worker visas and employment contracts; candidates wanting to work remotely more frequently than their current models support; and difficulty finding the right people for leadership roles.
Mr Brookes added: “It’s encouraging to see that innovation remains at the core of how businesses intend to reach their growth potential. However, there are still a number of notable challenges at play, including the enduring issue of recruitment and retention, which need to be addressed to allow these businesses to reach their full potential.”