More than a third of the region’s construction firms say they’re concerned they won’t make it to the end of the year, with high tax burdens listed as the number one reason they’re struggling.

Of the business owners surveyed in East Anglia, 38pc said that they aren’t confident that they will be able to trade through the next 12 months, according to a new study by business advisory firm FRP.

Tax burdens are a major concern for firms, with 76pc admitting they would struggle to pay their tax liabilities or any outstanding tax in full this year. 

Eastern Daily Press: Tax burdens are a major concern for firms in East AngliaTax burdens are a major concern for firms in East Anglia (Image: Newsquest)

Meanwhile, 82pc flag that political uncertainty in an election year is either causing them to delay investments or prompting clients to postpone commissioning new work.

READ MORE: Thousands set to lose jobs under ban on building new homes 

In response, many construction businesses said they’re taking steps to mitigate the damage, including reigning back on new business development, and selling off assets like machinery and switching to leasing instead.

Richard Bloomfield, restructuring advisory director at FRP’s Norwich office said the findings were “extremely concerning”.

Eastern Daily Press: Richard Bloomfield, restructuring advisory director at FRP’s Norwich officeRichard Bloomfield, restructuring advisory director at FRP’s Norwich office (Image: FRP)

He said: “Factors like raw material price inflation, supply chain disruption and heightened interest rates have combined with heavy debt loads to stretch firms’ bottom lines. 

“And, in the immediate future, conditions are still looking tough. Although we’re expecting inflation to continue to slow and to see an interest rate cut soon, the cost of capital and the cost of doing business will remain high, meaning there will be little respite.

“Management teams are wary of falling victim to a ‘domino’ effect where another’s collapse hits them too.”  

In Norfolk the situation has been worsened by the block on the construction of new homes imposed by Natural England two years ago.

Officials from the organisation have forced local councils to stop granting permission for housing developments until they can prove the new properties would not contribute to river pollution, leaving many construction firms in limbo while they wait for a credits system to be rolled out.

Supercharge East is brought to you in association with the Eastern Daily Press and Greater Anglia.