NORTH-EAST businesses have revealed what they want to see from tomorrow's Budget, including an extension to furlough after almost half used the scheme.

Regional SMEs are calling on the Chancellor to announce an extension to the furlough scheme when he delivers his Budget tomorrow, according to the latest data from Lloyds Bank’s Business Barometer research.

When asked which initiative would be most beneficial to helping their firm trade this year, almost a third (31 per cent) of regional SMEs said an extension to the Coronavirus Job Retention Scheme or the introduction of a new scheme to help them retain employees.

More than a quarter (26 per cent) said they hoped a cut in the VAT rate would be included in the package of measures announced by the Chancellor Rishi Sunak, while 12 per cent said they would be keen for him to focus on growth policies like staff training grants or business investment tax relief.

While more than half (55 per cent) of those polled said they were either ‘very’ or ‘fairly’ optimistic that their firm could trade solvently through 2021 without the support of Government schemes, a fifth (19 per cent) were 'not very’ or ‘not at all’ optimistic.

One in five (20 per cent) were undecided, saying they were neither confident nor not confident.

The research also revealed the Covid-19 support measures that North-East businesses had already made use of during the past year.

Almost half (45 per cent) had used the furlough scheme, around one in six (15 per cent) had accessed Government-backed emergency business funding, for example a Bounce-Back Loan or finance through the Coronavirus Business Interruption Loan Scheme.

Just under one in five (18 per cent) had claimed relief on business rates.

Meanwhile, a third of respondents (33 per cent) said their business had not needed to access any of the Government’s Covid-19 support schemes so far.

Many firms remain optimistic ahead of tomorrow's announcements, the regional head for Lloyds Bank Commercial Banking claimed. 

Steve Harris said: “SMEs in the North East are looking optimistically towards the future now the Prime Minister’s has provided a roadmap out of lockdown.

"While this rise in confidence is encouraging, many will be looking to the Chancellor for additional support as they begin to reopen and rebuild in the coming months.

"Whatever the outcome of tomorrow’s budget, we will remain by the side of businesses in the North East and will help firms as they begin to make tentative steps towards recovery.”

Mr Sunak faces a difficult balancing act when he sets out his Budget tomorrow, as he must begin dealing with the black hole left in public finances due to the pandemic while also supporting hard-hit families and businesses.