Cornwall’s Businesses Warn: Rising Costs Could Stifle Growth

Call for Government Action Ahead of Spring Statement

Cornish businesses are urging the Government to ease financial pressures and support growth instead of adding to their costs. A recent survey by the Cornwall Chamber of Commerce, covering more than 100 local businesses, highlights growing concerns over rising National Insurance Contributions (NIC) and the minimum wage.

With the Spring Statement approaching, business leaders are calling for measures that foster innovation and investment rather than placing further strain on companies already facing financial challenges.

Rising Costs Threaten Jobs and Investment

According to the survey, 85% of businesses in Cornwall are already struggling with the impact of rising costs. Initial estimates suggest these changes could cost each company an average of £21,000, with some businesses facing increases of up to £500,000.

For Cornwall, where Gross Value Added (GVA) is below the national average, these additional costs could severely impact small and medium-sized enterprises (SMEs), which make up the majority of the local economy.

The consequences are already being felt:

• One in 10 businesses have begun making redundancies.
• 24% have frozen hiring, limiting job opportunities in a county where wages are already lower than much of the UK.
• 33% have cut capital investment, meaning less funding for growth and expansion.
• More than half of businesses report a decline in confidence, raising concerns about long-term economic stability.

A Plea for Government Support

John Brown, CEO of Cornwall Chamber of Commerce, stressed the need for urgent action:

“Cornwall’s businesses have continually proven their resilience, but we cannot be asked to shoulder still more burdens without the means to grow and innovate. The Spring Statement is a critical moment for the Government to support the people who fuel our local economy, rather than simply adding to their costs. With the right measures—relief from escalating taxes, streamlined regulations, and incentives for investment—we can protect jobs, maintain momentum, and help Cornwall thrive.”

The Chamber is calling for:

• A freeze on further tax increases to ease financial pressure.
• Targeted relief to offset rising NIC and wage obligations.
• Investment incentives for Cornwall’s key sectors, including tourism, agriculture, and professional services.

With the right Government support, businesses believe they can continue to innovate, create jobs, and contribute to Cornwall’s economy. However, without intervention, many fear the rising financial burden could stifle growth and limit future opportunities.

Photo: John Brown, CEO of the Cornwall Chamber of Commerce