BUDGET: Business leaders react
THE REGION’S business leaders have given their reaction to yesterday’s Budget.
Andy Street, chair of the Greater Birmingham and Solihull Local Enterprise Partnership, said: “It is encouraging that the Chancellor has recognised the ambition of GBSLEP and its partners to drive economic growth and the good progress being made to achieve our aims.
“We know that we need more people to have better skills and more people to be in work if we are to truly achieve our potential. We therefore welcome the building on the work coaches initiative, launched at our annual conference, with the creation of a new employment advisor role, starting in Birmingham and then rolling out across the LEP area.
“This work on employment and skills will become a key focus for the West Midlands Combined Authority. We are pleased that the Chancellor has signalled his support for its creation and has recognised the potential for even greater economic outcomes to be achieved through it.
“The announcement of £5m funding to support ‘Midlands Connect’ will support us to develop a vision for transport investment across the East and West Midlands to drive further economic growth. It will form a key part of ours, and the Government’s, ambition to establish a Midlands Engine.”
Louise Bennett, chief executive of the Coventry and Warwickshire Chamber of Commerce, said it was a bold statement from George Osborne.
“It was a Budget where had to balance politics with a need to continue the country’s economic recovery and to provide business with the stimulus it needs to invest and create jobs,” she said.
“We saw from our latest Quarterly Economic Survey that there has been a slight reluctance from firms to invest in machinery and training so it was pleasing to see the Chancellor tackle these head on by increasing the Annual Investment Allowance to £200,000 and also encouraging more apprenticeships.”
Bhanu Dhir, head of policy for the Black Country Chamber of Commerce, said: “I think businesses are generally pleased with the proposals but a lot more detail is needed.
“Two million jobs and three million apprenticeships really means five million new jobs at a time when consumer demand is driving recovery rather than business investment.
“Our quarterly survey is not yet showing an appetite to invest amongst our businesses despite improving cash flow. The changes in Annual Investment Allowance albeit welcome, is unlikely to incentivise uncertain businesses.”
Gary Woodman, executive director of Worcestershire Local Enterprise Partnership, said: “It is reassuring that the Chancellor’s Budget shows anticipated economic growth and job creation over the coming years and businesses will welcome measures such as lower Corporation Tax and reduced National Insurance for SMEs.
“We welcome the announcement of devolution of powers to provide responsibility at a local level for decisions which impact the local economy, with the first example being setting Sunday Trading Laws, and now need to understand further exactly how this will work in practice.
“And it is reassuring that businesses are being rewarded for investing in training. Worcestershire now has 10,000 people participating in an apprenticeship scheme, four times the number in 2011, and any mechanism to help companies to increase the amount of excellent schemes available locally is welcomed.”
Jane Gratton, deputy chief executive of Staffordshire Chambers of Commerce, said: “There was some good news in the Budget for businesses in this area. The new permanent Annual Investment Allowance is fantastic news for our growing manufacturing and logistics businesses. It will give them the confidence to invest in plant, machinery and vehicles they need to remain competitive.
“Further Corporation Tax reductions and lower National Insurance for small businesses, will be welcomed, as will the commitments to childcare and higher education. These measures will help our local firms to employ, retain and develop a skilled workforce.
“The announcement around transport funding is good news if it can be used to improve our local infrastructure, reduce congestion and speed up journey times. We wait to see the detail behind this.
“Most Chamber member businesses already pay their staff at or above the Living Wage. However, for our smaller firms, we need assurances that moves to create a National Living Wage will not damage their growth and job creation prospects.”
