Budget will put "wind in the sails of business investment"
YESTERDAY’S Budget has been widely welcomed by Yorkshire’s businesses as the CBI said the package of measures will put “wind in the sails of business investment.”
John Huddleston, CBI assistant director, Yorkshire and The Humber, said this was a “make or break budget”, coming at a critical time in the recovery and that the Chancellor has focused his firepower on areas that have the potential to lock in growth.
“It’s encouraging to see higher than expected growth in the short-term, but as the Chancellor recognised, tough challenges remain ahead, so it’s right that the Budget reflected the fiscal reality,” he said.
“The economy needs to rebalance and this Budget will help businesses hungry to invest and export.”
Meanwhile, the manufacturers’ organisation EEF said yesterday’s Budget was good news for the region’s manufacturers as the Chancellor “delivered on his word.”
Andrew Tuscher, Yorkshire region director at EEF said: “Manufacturers in Yorkshire should be delighted – the Chancellor said this would be a Budget for manufacturing and he has more than delivered on his word. The Government has sent a strong message that it clearly recognises the need to make the competitiveness of the UK a priority and this will benefit hard-working companies across the region, as well as up and down the country.
“We made a strong case for the need to reduce the rising cost of energy faced by so many companies and the Chancellor has acted on that. Taken together with measures to boost investment, exports and skills, the Chancellor deserves a pat on the back. We have always said that to achieve a resilient recovery the Government must back manufacturing and we’ve seen that from this Budget.
“We now have some of the building blocks in place which will help rebalance the economy. But, as the Chancellor suggests, there’s still more work to be done. We now need to take steps which will lead to longer-term solutions beyond current spending and electoral cycles. This will finally give business the predictability and certainty to encourage the successive rounds of investment our economy needs.”
“Following the recent launch of the LEP’s Apprenticeship Challenge with the Duke of York, we are supportive that the government is going even further to support over 100,000 more apprentices across the country. We will continue to work hard and support businesses in the region to enhance their workforce and create career opportunities for our young people.”
TheBusinessDesk.com has outlined some key points from the Budget and how it will impact on business in Yorkshire & the Humber:
• Every business in Yorkshire and Humber will benefit from the capping of the carbon price support rate announced today. Particularly energy intensive industries will also benefit from compensation for higher energy costs caused by government energy policy. They include AMG Aluminium UK Ltd, INEOS Manufacturing Hull, Sonoco Cores and Paper, Weidmann Whiteley.
• 21 Combined Heat & Power Plants (CHP) plants in Yorkshire and Humber are likely to benefit from Government support announced in the Budget. They include BASF, University of Leeds, Leeds Tea Transport, Nufarm UK.
• The business energy package in total will be worth at least £669m in Yorkshire and Humber.
• Announced at last year’s Budget and starting this April, the new Employment Allowance will offer £2,000 cash to up to 91,000 employers in Yorkshire and Humber.
• Businesses in Yorkshire and Humber will also benefit from the doubling of the annual investment allowance to £500,000 until the end of 2015.
• £20m Regional Air Connectivity Fund will encourage airlines to start flying new routes from regional airports to increase connectivity and boost local economies, includes Leeds Bradford and Doncaster Sheffield airports.
