Spring Statement South West business reaction: Welcome for commitment to growth

Chancellor Rachel Reeves’ commitment to help drive business and economic growth in her Spring Statement has been welcomed by the South West’s largest business membership organisation.

Business West, which runs the chambers of commerce in Bristol Bath, Wiltshire and Gloucestershire, said it was vital that this focus continued alongside ongoing commitments on planning reform and increased defence spending.

Business West MD Phil Smith said the organisation was also encouraged to hear the Chancellor’s plans to tackle the construction skills gap, which was hampering the ability to build the homes needed across the region.

“This is in line with the recommendations from the Local Skills Improvement Plan, which Business West leads for the West of England and North Somerset, Gloucestershire, Swindon and Wiltshire,” he added.

He also said Business West was pleased that the Chancellor had referenced Swindon in plans to support councils and housing associations bring bids forward for new developments.

“This upfront investment in housing delivery will help attract private investment, said Mr Smith.

“Business West has been working closely with Swindon Borough Council on bringing forward a new wave of housing in the heart of Swindon.

“It is vital that the focus on business and economic growth continues, and we welcome the Chancellor’s commitment to helping drive this.”

Business West is a member of Swindon Futures Commission, a dedicated group established to investigate, analyse and propose solutions to vital issues affecting the town’s economic performance and future trajectory.

Its aim is to shape a forward-looking vision for Swindon that prioritises sustainable and inclusive economic growth.

However, Dorset Chamber chief executive Ian Girling described the measures in the Spring Statement as “uninspiring”, adding that they would have done little to reassure businesses in the county.

“Dorset must make sure its many excellent defence and technology businesses gains their fair share of increased spending on defence, including access to MoD contracts, infrastructure and skills development,” he added.

“We are pleased that the Chancellor introduced no further taxes on business but this could very much be the calm before the storm when NI and minimum wage rises come into effect and if the Chancellor needs to find more money in the full Autumn Budget.”

During her speech, the Chancellor said she was backing the UK to become a “defence industrial superpower”, with “world class defence industrial centres like Plymouth” playing a key role.

That was welcomed by Plymouth Moor View MP Fred Thomas, who said he was delighted the Chancellor had listened to his arguments for investing in the city.

“Increased defence spending is fantastic news for our city and our country. Plymouth stands ready to serve. We will deliver for the country as we always have,” he added.

“We will enjoy deep Government investment in not only our dockyard but also our city’s infrastructure, military homes, our world leading high tech marine businesses and in our city’s people.”

The importance of defence, one of the South West’s largest sectors, was weaved through the Spring Statement.

Defence spending, which had been due to rise £2.9bn next year, will increase by a further £2.2bn, Reeves said, taking it to 2.5% of GDP by 2027.

As home to Europe’s largest naval base – Devonport in Plymouth – as well as the MoD’s Defence Equipment & Support arm at Abbey Wood, Bristol, and the HQ of the UK Hydrographic Office in Taunton, the South West is expected to benefit more than most other regions by the lift in defence spending.

It is already the region with the second highest MoD spending in the UK – £6.9bn a year against £7.9bn in the South East – and is home to many of the country’s largest defence contractors, including BAE Systems, Rolls-Royce and missile systems firm MBDA in Bristol, Babcock in Bristol and Plymouth, Leonardo Helicopters in Yeovil and Avon Technologies in Melksham, Wiltshire.

The defence industry in Cornwall, Devon, Dorset and Somerset alone supports more than 61,000 highly skilled jobs and contributes £2.8bn in GVA to the UK economy, while the east of the region has the largest cluster of aerospace firms in Europe.

The increased in defence spending was welcomed by Sutton and Devonport MP and armed forces minister Luke Pollard, who also said it was good news for Plymouth.

“More investment in innovative technologies will help our marine autonomy businesses. And more defence funding means we can get on with the job of fixing the awful state of defence housing,” he added.