Concern over Osborne’s plan for growth

THE region’s business leaders have given a mixed response to the measures included in George Osborne’s Autumn Statement.

While there was support from small firms for the 10-fold hike in capital allowances relief to £250,000, and news that the private sector-led local enterprise partnerships (LEPs) will be able to bid for funding to support growth initiatives, there was concern too that not enough has been done to drive growth in the economy,

Andrew Goodwin, senior adviser to Ernst & Young’s ITEM Club said: “Though there was a large number of policy announcements, we were left with the impression that they will not add up to very much in terms of promoting growth.
 
“The greater focus on capital spending is right. But we feel that he could have increased capital spending by more and done so without cutting current spending. The impact on growth from these measures will be negligible and it does represent an opportunity missed.”
 
John Cridland, director general of the CBI, said: “The Government now has everything to prove by delivering. Businesses need to see the Chancellor’s words translated into building sites on the ground.”

Commenting on the measures for LEPs Christine Gaskell, chair of the Cheshire & Warrington LEP said: “”Increased financial backing for the Local Enterprise partnerships will greatly assist the delivery of our ambitious business plan to drive forward economic growth in Cheshire and Warrington.”

Juergen Maier, chair of the North West Business Leadership team and a key executive at Siemens in the North West said: ” “We were looking for support for growth and not just short term.

“The £5bn of Infrastructure projects is welcome, but we’re not sure how much of that is new and it won’t translate into much real growth.  In summary, when you add up the real growth measures versus cuts, it looks to us like the balance remains more on the latter.”

Nick Wraith, managing director of £6m turnover Middleton manufacturer United Aluminium said he was surprised there was not more help for the sector.

He said: “UK output this year has been very sluggish and I thought this would have been addressed directly by the Chancellor.

“The success of companies like our relies on being able to bring new products to market, so the investment allowance increase is very interesting, and something we may be able to take advantage of. This said, I feel more could have been done specifically for manufacturers, and I can’t help but feeling like we’ve been left out in the cold somewhat.” 

David Lathwood, Manchester-based director and head of Jones Lang LaSalle in the North West said:  “The emphasis the Chancellor put on ‘science, roads and education’ plays directly to the priorities for Manchester’s own development, with improved transport infrastructure and the growth of our universities absolutely critical for the future of the regional economy.

“The reassurances he gave about High Speed 2 are therefore very welcome, as is the three-year empty rates exemption for new build commercial schemes, which should help accelerate the development of key sites in the region.”

More Autumn Statement coverage:

MP Birtwistle turns Osborne’s head on allowances
Salford secures ultra-fast broadband deal
Osborne confirms fracking tax breaks
More cash for international trade
Autumn Statement: Economy is healing says Osborne