Key issues local businesses highlighted to Buckinghamshire Business First (BBF) in July 2024 included :
Trading conditions
- Businesses are cautiously optimistic about the change in government, but are hoping for more certainty and clarity following the October spending review.
- Smaller businesses continue to face challenges retaining talent. Some are paying higher wages to keep good employees, even if it impacts their profitability. Others are investing in automation and productivity improvements.
- Businesses are expressing concerns about the impact of high inflation and interest rates on consumer demand and their own costs, with some struggling to pass on price increases, which affects their profitability. It is hoped that a gradual reduction in interest rates over the next 18-24 months could help boost consumer demand and business confidence.
Investment
- Most small firms are not interested in raising finance to fund growth due to high interest rates, particularly as many are still paying off Covid-19 Bounce Back Loans.
Net Zero
- Businesses are seeking grants for financial support in acquiring low carbon technologies (e.g. solar, LEDs, insulation etc.) as they try to transition to net zero emissions.
- Businesses need to invest approximately a quarter of the value of a property to make it net zero ready, which is delaying progress.
Sector insights
- Labour shortages are creating challenges within the construction industry.
- There is weak retail demand in the furniture industry
BBF use this 'on-the-ground' intelligence to inform local business support activity, and share it with central government on a monthly basis to inform national policy.
