Autumn Statement 2014 – bosses have their say

THERE was a mixed response from the region’s business leaders and entreprenuers to Chancellor George Osborne’s pre-election Autumn Statement.

Veteran manufacturing company owner Michael Oliver bemoaned the lack of help for medium-sized companies and exporters.

He said: “While the Chancellor has set aside some funds to support SMEs, he has once again missed a valuable opportunity to outline solid plans to support the mid-sized businesses that are the bedrock of the British economy, generating more than a third of the country’s GDP.

“The Chancellor could have signalled plans to further back these engines of the growth by incentivising export, for example, or reforming inheritance tax, in particular the ‘seven-year rule’, which acts as a barrier to entrepreneurs passing on successful businesses to family.

“Thinking more boldly, the Government could appoint a minister for mid-sized businesses with a dedicated remit for eradicating the red tape which businesses line my own have to cut through to succeed.”

Businessman Peter Done, the joint founder of Warrington gaming company Betfred and managing director of Manchester-based legal and health and safety consultancy Peninsula, welcomed the funding boost for small firms and the focus on rebalancing the economy by investing in the North.

He said: “Extending lending to small firms is a no brainer, and business rate relief is also welcomed. The banks have to continue lending to small firms, I hear daily entrepreneurs who are frustrated that banks simply will not finance their projects despite the promises the banks make.

“I think the Government have done a great job in turning around the economy, of course it is not easy and I don’t think we are out of the woods yet, I still think it is fragile but the Government are saying the right things.”
 
He added: “Investment in the North is good, whether it is investment in public transport, investment in science, it has been long needed to close the North South divide. The Chancellor calls it the Northern Powerhouse, I call it jobs and opportunities for Greater Manchester businesses and it was good to see George Osborne use Manchester as an example.

“There is still work that needs to be done, in particular – further road infrastructure, anyone driving in or out of the city centre through Salford on the A580 which will agree that it is total chaos.”

Lawrence Jones, pictured, chief executive of datacentres company UKFast broadly welcomed the announcement, but was concerned about a lack of mention of digital investment.

“There needs to be more of a focus on getting fibre around the UK and getting faster connectivity so we can compete better as businesses. Business success isn’t all about rail and roads; most business can be done online. Our future is digital.”
 
“Ultimately, it’s governments that can either stop us in our tracks and make us lose confidence, or energise us and keep us feeling optimistic. For me, this autumn statement has achieved the latter.”

Gavin Wheeldon, chief executive of Purple WiFi, focused on the extra help for exporters.

“While I welcome announcements by the Chancellor that an extra £45m is being dedicated to encourage exporting to markets beyond Europe, we need to wait and see what the details are.

“These funds sometimes miss the mark by failing to provide support to service and software based companies whose products are in demand just as much as those whose manufacture physical products for export. I hope there is consideration from Westminster about how a wider range of businesses can benefit from the fund.”

Paul Kenyon, co-founder of Manchester-based IT security firm Avecto, said: “This is an exciting time for the North. The devolution deal, improved infrastructure and other initiatives have provided a sense of belief that we can have real success as a region in the coming years. We’ve got everything from investment in science to new cultural attractions. The future’s looking bright.

“It bodes well for our tech sector too. Improved infrastructure will encourage collaboration between tech companies in the major cities of the North. Manchester’s tech sector alone is worth £1.9bn to the economy. Coupled with the other northern cities we could make a serious impact on an international scale.”

David Brimelow of Manchester based Duo UK, a polythene packaging manufacturer and supplier, said: “It was good to hear that the Northern Powerhouse concept made it into the Autumn Statement – even if nothing new was announced, it’s good news it’s still on the political agenda and  great that Manchester is leading the way.  Greater Manchester has a big part to play  in rebalancing the economy away from London so being empowered to make spending decisions about crucial regional infrastructure, such as trains, roads and schools, will help Manchester fulfil this role.

“After all, it’s investments like this that effect our businesses daily – from how quickly our distribution fleet can reach our customers to finding talented school leavers to join our team – so the more we can influence decision makers the better.  The more Northern cities follow Greater Manchester’s lead, get on board and commit to working together the better – if we can harness the energy and innovation of Northern business this is a real opportunity to generate renewed prosperity for our region.”

Simon Edmondson, regional chairman for Manchester & North Cheshire at the Federation for Small Businesses was positive in his reaction, stating: “We were seeking a business friendly Autumn Statement, and that’s precisely what we got.

“Businesses will be breathing a sigh of relief that Small Business Rate Relief has been extended again. While the FSB is delighted to see the double small business rate relief remain for another year, news that a full review of the outdated business rates system will happen is something we’ve long argued for.

“The current system is out of date and frankly needs to be put out to grass. It’s complicated, opaque, regressive and unresponsive to changes in economic conditions. Many of our members tell us paying business rates is their third biggest cost after rent and wages, yet the tax is poorly targeted and not based on ability to pay.

“All businesses will be grateful for this review, but let’s be absolutely clear on what businesses want – fundamental reform of the business rate system. The announced package of renewed reliefs, will also be essential, as they will help bridge the gap until fundamental reform can deliver the change everyone agrees must now come.”