Economics

Birmingham Chamber's economic policy is based on the tenet that business requires a low inflation, stable growth economy. Stability is key for firms in all sectors, enabling them to plan effectively for the future.

The economy as a whole has a substantial impact on the way business operates. Budgets, tax, inflation, interest rates and exchange rates all affect the performance of businesses in Birmingham, the UK and beyond. The Birmingham Chamber expresses its preferred outcome before each monthly Bank of England Monetary Policy Committee meeting and always offers reaction to its subsequent interest rate decision on behalf of its members. The policy team also considers the implications that inflation, economic growth, unemployment and retail statistics will have upon business on their release.

Birmingham Chamber's recent lobbying activities on the economy:

• BCI continues to advocate business and entrepreneur friendly tax policies to Government.

Interest Rates

• Birmingham Chamber is currently lobbying for interest rates to be lowered, whilst accepting that the MPC must keep a watchful eye on inflation.
• Birmingham Chamber has been vocal in rejecting alarmist reports of recession circulated in the press. BCI has urged decision makers and the press to adopt a responsible attitude and to carefully avoid talking the UK into recession.

Pre-Budget Report 2007

• BCI inputted into a joint campaign with other business groups via the British Chambers of Commerce to lobby against the abolishment of Capital Gains Tax taper relief in favour of an 18% flat tax rate announced in the Pre-Budget Report 2007. Following this campaign, the Chancellor announced that whilst the 18% flat tax rate would be retained, the rate will be reduced to 10% on gains up to £1 million to assist entrepreneurs and SMEs.

Budget 2008

• The Chamber recently urged the Government to demonstrate a pro-enterprise agenda in the 2008 Budget announcement. To read a summary of the Chamber's priorities, click here.
• The Chamber hosted a Budget 2008 event for members with Ernst & Young. To read more about the event, the Chancellor's announcements and the Chamber's reaction, click here. 
• Our economic policy is informed by our Quarterly Economic Survey, the results of which can be seen here .
  

For more information, please contact Katie Teasdale on 0121 450 4204 or email k.teasdale@birminghamchamber.org.uk.