Region's companies reveal their hopes and fears for future ahead of Thursday election

Company bosses in Suffolk and north Essex are calling on the next government to help businesses out of the doldrums.

As polling stations prepare to open for the 2024 General Election, sectors including haulage, hospitality and construction say times are tough.

They survived the pandemic of 2020/21, supply chain paralysis and rocketing costs following the Ukraine invasion of February 2022.

They were then plunged into another crisis as the economy tanked following the dramatic rise and fall of the ill-fated Liz Truss administration in September to October 2022.

If, as polls suggest, there is a Labour landslide, Suffolk company owners say they want to see a period of stability, confidence and support for business - but there are big challenges ahead.

Tremayne Johnson of Eye-based haulage and logistics firm Bartrums says his sector has been hugely affected by an industry downturn which has led to up to 500 or so business collapses across the UK over the last 12 to 18 months.

Tremayne Johnson of Bartrums (Image: Charlotte Bond)

"The market place for haulage is quite a toxic environment at the moment," he says.

Nearly a third of haulage businesses' costs is fuel, another third staff and the rest is vehicles and backroom activities, he explains. All of these costs have risen dramatically but contracts have slowed.

From a situation where there weren't enough lorries or labour to go around, hauliers are now "competing ferociously" for slightly less work, he says. But the situation could reach a tipping point, he predicts.

Further shrinkage of the industry would be "disastrous" for the UK as firms in the sector are inter-dependent.

"It's a genuinely significant part of the UK economy and it greases the wheels that turn the economy," he says.

"It needs some government focus and a bit of a taskforce to see what the can do to ease the burden."

Lowering road tax - his company currently pays £1136 on each of its 100 trucks a year - would  help. Lowering fuel duty is another option - although the benefit would pass to the customer.

"I do think the UK economy is on the cusp of recovery and I'm just hoping that will continue.

"From a Bartrums perspective we have weathered the storm quite well because of the makeup of the business but there has been a lot that haven't and it's at a level to say the industry is in a bit of crisis - it does warrant government focus.

"The logistics industry is absolutely key in turning around the economy."

Steven Rose, managing director of construction firm the Rose Group at Lawford, Manningtree, says the construction industry is also under pressure. He runs a £70m-plus turnover group with 250 employees working across the region.

(Image: Rose Group)

But he is feeling optimistic if the election goes the way of the polls because of the pledges that Labour has made on building new homes and infrastructure.

"It's really important they do deliver on it and make a difference - it's the fastest way of getting the economy going - investing in the housing industry. History has proved that and there's a huge demand."

Building homes would also help solve a major social problem with demand outstripping supply, he points out.

The last 18 months have been tough, he says. Transactions were happening ahead of the polls because of fear over what might come next, he adds. People want "certainty and assurance".

"We are agnostic to politics - we have to work with whoever is in power. I do hope it's a clear majority either way and whatever party is able to deliver what they are promising and it isn't just pre-election hype."

Steve Magnall, chief executive of Two Magpies regional bakery chain, predicts even if the Conservatives win there will be little on offer for small and medium-sized businesses.

(Image: Two Magpies)

They promised business rates reform, he points out. "Fourteen years on  and it's still a shambles."

He also has some concerns about what an incoming Labour administration might do.

"With Labour, I think most of their policies - knowing they have no cash to implement major change - make sense.

"I do have a few concerns though. Labour says it is replacing the rates system but doesn’t give masses of detail. April will come round and unless resolved we will be back in the same trouble."

Minimum wage increases are particularly hard for small and medium-sized businesses, he says, and he is "really nervous" about workforce legislation on improving statutory sick pay.

"We need support - not more cost burden," he says.

"We as a nation are underperforming versus our peers and while I think the government needs to put more into the NHS and mental health services - one of the growing areas of sickness - I don’t want us paying the additional cost for a policy that is effectively supporting social care."

He supports the abolition of zero hours contracts - but says there must be some protection for employers when imposing greater employee protection against dismissal.

"Otherwise we will just increase probationary periods to make sure we have room for manoeuvre. In my experience, you need a year at least to fully understand your staff and their motivations."

He adds: "I am pleased to see that they intend to sort some of the Brexit mess out and get some things closer to Europe, and I support this.”

Jonathan Reed, co-owner of Paddy & Scott's coffee business in Ipswich, wants to see government incentives to encourage business growth as well as to encourage people to spend money, have pride in where they live and generate more confident and buoyant times.

"What we are all looking for is a sense of leadership. I think we are all desperate for a sense and a feeling that the future is bright - and that the economy is going to build from here.

"Where we are today is a lack of leadership and there's no strong sense of vision coming from the government," he says. "It's difficult to make decisions, it's difficult to invest as a business because we don't know what the future looks like."

If, as likely, Labour wins, there is an opportunity to rebuild trust, he suggests. "If they put more controls and more policy around business and increase taxes that would be a problem for me commercially because I believe rightly or wrongly that entrepreneurs have the ability to generate lots of change around the world."

He would like government to recognise the huge role hospitality plays in the UK - not only for the economy and as employers but for the services and enjoyment they bring to people.

He also wants to see more emphasis on achieving carbon-cutting goals.

“I was reading an academic paper recently that said macroeconomic damage from climate change is likely to be six times higher than anticipated.

"A 1% increase in global temperature could lead to a 12% decline in world GDP and 31% welfare loss.

"Kicking the sustainability can down the road needs to stop and the government needs to step up and take action as a priority.”

Greg Newman founder and director of Lanman Solar of Ipswich would also like to see investment in home-grown renewable energy - rather than investing in the North Sea fossil fuel industry.

(Image: Lanman Solar)

His company - which installs solar panels, battery storage and EV chargers and was founded less than two years ago - has already seen a turnover of £1m in its first year.

"We would like to see more grants and subsidies for homes and businesses looking to invest in solar power.

"There are grants for heat pumps, but not solar currently. Both homes and businesses are facing tough times currently, and assisting them financially in making the move to renewable solar energy will provide them with long term savings, energy independence, and add value to their properties."

Extending VAT exemptions for renewable energy installations when that runs out in two or three years' time would be "great".

He would also like the next government to lower taxes and provide additional support for companies installing solar panels and battery storage because of the benefits they bring.

Financial expert Colin Low, managing director of Ipswich-based wealth planners Kingsfleet says he wants the focus of the next government to be on stability and preparing youngsters for employment. He hopes an incoming government won't "mess with" the pension system.

(Image: NQ)

"I think we've all seen too much change within government- not just the occupant of No 10, but ministerial responsibilities have changed constantly and no sooner has a new minister understood their brief than they are moved on or shipped out."

He suggests colleges and universities should engage more with businesses and work in collaboration on educating the next generation.

He also wants pensions to be left alone.

"Pensions funds ultimately invest in great companies - many based in the UK.  To encourage investors to save for the long term - and to invest in quality British businesses - they need to have clarity and certainty in the pension system.

"There have been too many changes to this in recent years with the introduction, increase, then decrease, then abolition of the Lifetime Allowance, variations in the Annual Contribution Allowance and threats to the Tax Free Cash option.

"We need an early reassurance that none of these will be changed so that the public can plan their futures with confidence."

Ellen Widdup, managing director of Woodbridge PR firm Satsuma Group, says elections are unsettling for businesses.

Ellen Widdup (Image: Paul Nixon)

“Small businesses have had a very rocky time with soaring inflation, the cost-of-living crisis and adverse effects of Brexit and we need a new government to acknowledge this with renewed commitment to fostering a thriving entrepreneurial environment such as targeted support initiatives that recognise the unique challenges small businesses face," she says.

She wants to see measures to ensure that small businesses - the "lifeblood" of the high street - thrive.

“I would like to see the government communicating better with SME owners to understand the issues they are facing such as cash flow, business overheads and getting paid on time and I’d like to see more investment in apprenticeships and incentivising businesses to take on staff."

Suffolk Chamber head of public affairs Paul Simon wants a fairer deal for the county and the region.

Paul Simon (Image: Nicky West)

“Our topline asks of the next government are for systemic and programmed rail, road and connectivity infrastructure upgrades, lower and smarter corporate taxes that don’t penalise entrepreneurial risk-taking, and the empowerment of businesses to be at the centre of skills development and other positive economic and social initiatives.

“In particular, from day one we will be pressing the new administration to give the go-ahead to the long overdue investment in the rail junctions at Ely and Haughley, for Suffolk to be given priority in the future rollout of 5G infrastructure, for additional funds to be made available to restart investigations into sustainable solutions for the road network in and around Ipswich, for the employer-led Suffolk & Norfolk Local Skills improvement Plan to be funded beyond March next year and for the bizarre and perverse business rates system to be replaced by a sales or turnover tax by the end of the next Parliament.”

Luke Broadley of business club Longfields Circle said the election was of "significant interest" to Ipswich's small businesses.

"The recent promotion of Ipswich Town FC has already brought substantial economic benefit and further potential to the area, increasing foot traffic and boosting local commerce," he said.

"It is crucial for the next government to prioritise small businesses and their owners in its strategic planning for Ipswich, implementing policies that empower them to leverage opportunities and pursue the momentum from the football club's success and further drive economic growth and bring the town of business into the premiership as well."