Responding to the Chancellor’s Autumn Budget, Shevaun Haviland, Director General of the British Chambers of Commerce, said:
“This was a ‘steady as you go’ budget, sending the right signals to business, but lacking big calls that would really shift the economic dial.
“Most sectors will be pleased to have avoided any further taxes being piled upon them. But, overall, most businesses won’t notice this budget at all.
“Our key tests for the Chancellor were whether his plans would boost growth and ease costs for business. Many firms will have been hoping for a greater impact.
“It is clear he has heard business calls for action to ease the costs pressures they are facing but was constrained by a tight fiscal and difficult international environment.
“There were several positive steps outlined, including Founders Relief and significant reductions or the complete removal of business rates for many in the retail, hospitality and leisure.
“Additional funding for AI, increased finance through the National Wealth Fund and British Business Bank will also offer new opportunities for entrepreneurs to start and scale up.
“On the other side of the ledger, measures including the announcement of a higher bank surcharge and limited new help on businesses’ energy bills are less welcome.
“The Chancellor clearly has a vision of where he wants to take the economy. But the only way this can happen is if he gets behind business by cutting their costs. Unless that happens then the stronger economic performance we all crave will prove elusive.
“We would have liked to see a wider range of businesses benefitting from energy support and business rates reform, and more action to tackle the youth unemployment crisis. These are areas the British Chambers of Commerce will be seeking more action on in the months and years ahead.”
On Devolution
“We strongly support the transfer of real economic power to Mayors but for the potential of devolution to be realised, business must be given a seat at the table from the start, and every area needs the capacity and safeguards to benefit.”
On the Bank Surcharge
“Taxing one part of the economy to help another is not cost-free. Albeit time-limited, a higher bank levy will affect the price and availability of finance, with costs travelling down supply chains to businesses already operating on tight margins.”
On Energy Costs
“It was disappointing that there was nothing in this budget to help businesses with energy costs outside of the British Industrial Competitiveness Scheme. More than half of firms tell us that energy costs are squeezing them to raise prices. With operating margins already razor-thin, more of that pressure is likely to find its way through to higher prices for customers.”
On Procurement
“Using procurement more strategically and reducing selected tariffs are welcome. But the next test is delivery: giving SMEs a fair shot at public contracts, improving export support and turning the UK-EU reset into lower costs and fewer barriers.”
On Youth Unemployment
“While the Chancellor mentioned a £100m fund for a Local Apprenticeship Service, this had previously been announced. This funding is welcome, but firms were hoping to see him go further. Hopefully the Milburn Review will set out further measures to help tackle this problem.”