Shropshire Chamber of Commerce is calling for urgent Government action to reduce the cost burden on businesses after a new report revealed the scale of domestic policy‑driven price increases on local employers.

The British Chambers of Commerce’s ‘Cost Stack Calculator’ shows that the cumulative impact of wage regulation, National Insurance, pensions, business rates, compliance requirements, energy levies and insurance has pushed typical SME costs up by more than 70% since 2016 - with a quarter of that rise since the autumn 2024 Budget.

According to the report, a mid‑sized SME with a turnover of around £5 million has seen its typical policy‑related costs rise from £1.16 million in 2016/17 to nearly £1.98 million.

These now account for almost 40% of turnover, which the Chamber says illustrates how domestic policy decisions have become a major driver of financial pressure for businesses of all sizes.

Ruth Ross, chief executive of Shropshire Chamber, said the findings shone spotlight on the sheer weight of cost pressures that businesses in the county were carrying every single day, and the need for corrective action.

She said it confirmed what local employers had been saying for months: that statutory wage increases, higher employer National Insurance contributions, rising pension obligations, expanding HR and legal compliance, and steep growth in data, cyber and software costs were combining to create a cost environment that many firms are struggling to absorb.

“Other levies such as the Renewables Obligation, Contracts for Difference and the Climate Change Levy create additional strain at a time when businesses are already grappling with inflation, recruitment challenges and fragile market confidence.”

She said the Chamber was becoming increasingly concerned that the cumulative effect of these pressures is undermining investment, slowing growth and weakening resilience across the local economy.

Shropshire Chamber is encouraging businesses across the county to use the Cost Stack Calculator to understand how their own cost base has shifted over the past decade. It can be accessed at britishchambers.org.uk/cost-stack-calculator.

The tool also allows firms to anonymously contribute data that will strengthen the national evidence being presented to Government.

Ruth said: “The more businesses that engage, the stronger the case becomes for meaningful policy change that supports growth rather than adding to the burden.”