Herts Chamber of Commerce: Reflecting on the Budget

Although it brought some welcome support, it also introduced new challenges that will require businesses across our county to adapt.

The Chancellor’s emphasis on growth and stability underlines the difficult backdrop of economic recovery.

Forecasts show growth remaining modest at best, with the UK facing persistent inflationary pressures.

For Hertfordshire’s businesses, this means careful planning to balance ambition with caution.

The decision to keep corporation tax steady is a relief to some extent, especially for our SMEs.

Many local firms are still recovering from the effects of increased costs over the past few years, and a stable tax environment provides some predictability.

However, with inflation still elevated and the cost of borrowing likely to stay high, the key will be staying nimble.

Firms may need to focus on incremental growth, cost-efficiency measures and innovative revenue streams, particularly those that are less capital-intensive.

We know from the recently published LSIP report that Hertfordshire’s businesses are still facing significant challenges in attracting and retaining skilled staff.

The budget’s announcement of additional funding for skills development is welcome, particularly for sectors where skills shortages are acute, like manufacturing, digital and healthcare.

Investments in skills could help our local workforce build future-ready capabilities, but to see real impact, this funding needs to translate into accessible, industry-aligned training programs.

In practical terms, businesses should be looking to strengthen partnerships with local colleges, universities and training providers. Leveraging apprenticeships, internships and vocational programmes can address talent gaps while helping young people in Hertfordshire find career pathways locally.

Additionally, many firms are now looking at flexible work models and enhanced benefits to attract and keep employees.

One of the largest line items in this budget is support for energy resilience and the green transition. Businesses across Hertfordshire, particularly those in energy-intensive industries, are eager to see how the promised grants and subsidies for green technology adoption will play out.

While large-scale energy independence initiatives are expected to take years, the focus on renewable energy and efficiency programmes signals opportunities for businesses.

Those willing to invest in energy-efficient practices and green technology could not only cut costs in the longer term but also position themselves competitively.

For example, firms in logistics and manufacturing might look to adopt energy-efficient equipment, while office-based businesses can explore remote work options or energy-saving upgrades.

The key challenge will be the initial investment required. While grants and incentives help offset some of the cost, businesses should evaluate the long-term return on these investments.

Engaging with the Chamber for guidance on funding programmes and available incentives could be a helpful first step.

The budget also included measures targeting household cost-of-living challenges, which inevitably impact consumer spending.

For Hertfordshire’s retail, hospitality and service sectors, this means customers will likely remain cautious with discretionary spending in the near term.

To counteract this, businesses can focus on customer loyalty programmes and improving customer experience. This may also be an opportune time for local firms to collaborate, whether through cross-promotions or joint events, to maximise reach and draw in foot traffic.

The budget offers opportunities and challenges, and the coming months will undoubtedly require resilience and adaptability.

At the Hertfordshire Chamber of Commerce, we’re committed to supporting our business community through these changes.

Whether it’s connecting businesses to training programmes, advising on green initiatives, or fostering local collaborations, we’re here to help our members navigate this evolving landscape.

As we look to the months ahead, I encourage businesses across Hertfordshire to engage with us.

By coming together, sharing insights, and supporting one another, we can strengthen our local economy and ensure Hertfordshire continues to thrive amid change.

The challenges may be significant, but with careful planning and collaboration, Hertfordshire’s businesses can navigate this environment and seize the opportunities that lie ahead.