Businesses continue to face mounting challenges as concerns of further increases in taxation and inflation continue to surge, according to the latest Quarterly Economic Survey results from the Milton Keynes Chamber of Commerce.

The data, collected from a variety of businesses across the area shows that nearly 75% of the respondents have highlighted further taxation increases as their number one concern as businesses faces economic challenges.

Inflation has also been highlighted as a growing concern with over 58% of respondents saying that they are concerned about the potential that prices of raw materials, goods and services leading to higher costs for raw materials, wages, and overhead expenses. This can squeeze profit margins, force price increases, and impact consumer demand. It also affects interest rates, borrowing costs, and investment decisions.

While concerns about competition have eased by almost 50% on Quarter 4 for 2024, this shift suggests that businesses may be focusing more on financial pressures rather than market rivalry.

As companies brace for the challenges ahead, the Milton Keynes Chamber of Commerce are urging policymakers to address the growing concerns from local businesses over taxation and inflation to prevent further strain on businesses.

Head of Policy for the Milton Keynes Chamber of Commerce Simon Cox said “Rising taxation is putting significant pressure on businesses of all sizes, and without intervention, we could see a slowdown in investment and growth,”.

“With economic uncertainty on the rise, businesses will need to adapt and seek strategies to navigate the shifting landscape in 2025.”

The latest Quarterly Economic Survey for Quarter 1 can be found by visiting the Milton Keynes Chamber of Commerce website here. For more information, please contact: policy@chambermk.co.uk