The ACT’s 2022-23 budget has been slammed by the Canberra Business Chamber as being “underwhelming”.

Chamber CEO Graham Catt says more investment is needed to support Canberra businesses struggling with cost increases, shortages of supplies and workers.

“The Chief Minister has highlighted the strength of the ACT labour market, but skills and workforce shortages are very real indeed and a huge problem in the ACT,” says Catt.

“The number of vacancies is almost double the number of people seeking work, and this is a real handbrake on economic growth.

“Businesses can’t find staff, they are running out of options, and some local companies have no choice but to move interstate.”

Although the budget includes $22.4 million to deliver initiatives to develop “knowledge intensive sectors” Catt says there is very little detail about how the initiatives will be delivered.

“Our members are concerned the ACT government’s believes that local businesses no longer need support,” says Catt.

“Small businesses are increasingly in unchartered territory, with unemployment at record lows, the staff they need costs simply unattainable, and costs and inflation hitting record highs.”

The ACT budget foreshadows expenditure of $7 billion over five years on a pipeline of infrastructure projects including the Canberra Hospital Expansion, the CIT Woden Campus and Bus Interchange, and stage two of Light Rail.

While the chamber welcomes these projects, Catt hopes money will be spent with local companies to deliver the work.

“We will be missing out on the benefits if the government funds out-of-town businesses to do this work,” Catt says.

“Let’s support the investment with policies mandating local procurement.”

According to Catt there are 31,500 private businesses in the ACT, with the vast majority being small enterprises employing fewer than 20 people.

“It is these businesses, not the public sector, that now provide over 63 per cent of the territory’s jobs,” Catt says.