Greater Manchester Chamber submits budget ‘wish list’

GREATER Manchester Chamber of Commerce has sent a ‘wish list’ to Chancellor Alistair Darling as he prepares the next budget.

Head of business and economic policy Dr Brian Sloan said that at the top of the list for the city is a “credible plan” to deal with the budget deficit.

After that, it needs to abandon the 1% increase in employers’ national insurance contributions and then provide a short-term credit insurance scheme for exports.

Dr Sloan said: “The government needs to lay down as a matter of urgency a credible plan to deal with the Budget deficit.

“The nation now expects the inevitable tax rises and public sector spending cuts, but the current uncertainty over where the axe will fall and where taxes will rise is damaging business confidence and leading to lower levels of investment. Only through investment will we create wealth and jobs to sustain a recovery.

“The 1% increase to national insurance is a tax on jobs and this will deprive businesses in Greater Manchester of £120m a year, £3.43bn nationally, that might have been better used for investment and job creation and would make a positive contribution to addressing the budget deficit.

“Regarding credit insurance, there is evidence – particularly across the North West – that exports are driving the recovery, though not to the extent that weakened Sterling would suggest. The Government needs to provide trade credit insurance to help businesses achieve the full potential of overseas demand.”

Finally, Dr Sloan believes that the government must commit transport expenditure to critical infrastructure developments and implement a “discretionary relaxation” of the 16 hour rule for Job Seeker’s Allowance.

Brian says: “This transport infrastructure must include Northern Hub, rail electrification and active travel management on motorways. The Government also needs to commit to High Speed Rail plans when formally announced later in March.

“And the relaxation of the 16-hour rule for Job Seeker’s Allowance will have the longer term benefit of enabling people to support themselves through training and education to achieve a more valuable qualification that leads to more sustainable employment.”