Focus on skills, infrastructure and a simpler tax system that encourages investment and risk taking, Hampshire Chamber urges new Chancellor

Responding to the appointment of John Healey as Chancellor by incoming Prime Minister Andy Burnham, Ross McNally, Chief Executive and Executive Chair of Hampshire Chamber of Commerce, said: “The first priority is a stable, competitive and far simpler tax environment. Businesses understand the need for sound public finances, but they also need confidence that the tax system will encourage investment, not discourage it. Measures that support capital investment, research and development, innovation and productivity must be central to the government’s economic strategy. Simplifying tax code regulation reduces the costs of compliance and gives essential scope to invest and grow. It creates a level playing field for businesses of different sizes and sectors. It enables business advisers to develop strategies, including the capacity for their clients to take risks, with more certainty. In recent years, we have seen precious little understanding within Westminster of how the tax burden impacts businesses. That needs to change right now. We need to build a far more effective partnership between government and business around the issue of tax.

“Workplace skills must also be high on the Chancellor’s agenda. Across every sector, employers face recruitment challenges. We call on John Healey and his Cabinet colleagues to work with us on implementing the new three-year Local Skills Improvement Plan for Hampshire and The Solent. Led by Hampshire Chamber in partnership with business, education providers, local authorities, the third sector and Skills England, the plan strengthens our region’s focus on technical and vocational education so that employers can access the talent they need while creating better opportunities for our people, including NEETs. This is an opportunity that simply cannot be missed.

“Infrastructure investment remains equally important. Reliable transport links, modern digital connectivity, new housing and resilient energy networks are all essential if Hampshire businesses are to improve productivity and compete nationally and internationally.

“On the transition to a greener economy, businesses need practical support to decarbonise, including incentives for energy efficiency, investment in clean technologies and greater clarity over the long-term pathway to net zero. Many companies are ready to play their part, but they need consistent policy and realistic timescales.

“International trade also deserves renewed attention. Exporting businesses would welcome further efforts to reduce barriers to trade, improve export support services and strengthen relationships with key global markets. At the same time, simplifying customs processes and reducing unnecessary administrative burdens would particularly benefit smaller firms looking to trade overseas for the first time.

“Whether they export or not, our members have consistently called for a reduction in regulatory complexity. Streamlined planning processes, proportionate regulation and less bureaucracy would free up time and resources that could instead be directed towards growth and innovation.

“We have long demanded a clear, long-term government strategy that gives firms the confidence to invest, recruit and grow. Above all, the business community wants certainty. Frequent policy changes, shifting tax rules and short-term interventions make it harder for companies to plan, particularly small and medium-sized enterprises that form the backbone of our local economy.

“The new Chancellor has an opportunity to set a positive tone for the years ahead. By providing stability, backing enterprise, investing in people and infrastructure, and working alongside the business community, John Healey can create the conditions for sustainable economic growth. Businesses are not asking for special treatment; they are asking for a predictable environment in which hard work, innovation and ambition can flourish. If those foundations are put in place, firms across our region will do what they have always done: invest, create opportunities and help drive prosperity for our communities.”

You can read the latest Hampshire and the Solent Local Skills Improvement Plan (LSIP) 2026 – 2029 here.