Autumn Statement: Reaction from Chamber members

Greater Birmingham Chambers of Commerce members have been reacting to Chancellor Jeremy Hunt 's Autumn Statement which was announced yesterday.

Here is a round-up of the reaction from a selection of businesses.

John Webber (pictured), head of business rates at Colliers:

“By adding the CPI inflation figure to the existing multiplier, the Chancellor has grabbed even more cash from hard pressed retailers. For these businesses, the multiplier will be 54.6p – meaning business rates is heading towards being a 60 per cent tax. 

“The Chancellor’s actions will be a massive hit to the high street. Although most businesses in the retail and hospitality sectors have benefited to some extent from the 2023 Revaluation, the sectors are still under pressure facing higher occupational costs across the board as energy, employment and insurance costs soar- yesterday’s rise in the national living wage only adds to the pressure.”

“In his rush to save his job, the Chancellor has ignored the calls of the BRC and UK Hospitality and seems to have forgotten that the larger retailer and hospitality companies are the main employers in their sectors.

Hitting them with a 6.62 per cent rise in their rates bills next April will have a dire impact and certainly dampen expansion and growth plans.  For some businesses it might be the last straw.

“Aside from freezing the multiplier for small businesses, the government has also yet again failed to fulfil its election manifesto and introduce proper business rates reform.

“The Chancellor spoke of creating a tax regime pro-business and designed for further “levelling up”. The failure to freeze the larger multiplier fundamentally means substantial business rates rises for the UK’s biggest businesses from 2024.

“This is a damning indictment for the Conservative Government who have failed their manifesto promise to reduce this tax.”

Michael Owens, managing director of Schumacher Packaging and vice president of GBCC:

“The cynical observer would say this is an Autumn Statement with both eyes firmly on the 2024 election.

“However, as the British Chambers of Commerce (amongst others) have been pushing for, the standout measure for business is making full expensing for capital investment permanent.

“This is a clear incentive for innovative and forward-looking businesses and fits perfectly with the current and longer-term investment strategy of Schumacher Group in the UK.

“Along with streamlining infrastructure planning processes, incentivising tech, advanced manufacturing, green energy projects and life sciences, it bodes well for investment in the UK. On the negatives, there has not been the same level of commitment to SME’s.  

Anne-Marie Simpson, co-owner and managing director of Simpsons Bar:

“The statement included some positive measures for individuals but feel aimed at winning individual voters rather than a deliberate set of measures to address the structural issues that we face in service industries and particularly on our High Streets and Town Centres.

“Many service industries have been lobbying for both an increase in the VAT threshold or a reduction in the VAT level since the pandemic.

“For small business, this both limits growth and is a headline tax that with raw materials cost increases, labour cost inflation and fuel increases has tipped many businesses over into closure.

“The increases generously advised today to the minimum wage aren't funded by Government- they are funded by business - we are already paying over minimum wage for many staff. This now takes a further hit at support staff and more junior staff and adds cost pressure onto business.

“These measures in particular are likely to increase costs to customers and take us back into an inflationary cycle.”

Jon Greer, head of retirement policy at Quilter:

“Tinkering with the triple lock measure will be something the government would have been loathed to do given it will upset the Conservative party’s core voters. Being able to announce they are keeping the measure as is today will therefore represent a boon for Hunt and Sunak.

“This will set the uplift for next year’s full State Pension payment (for those reaching state pension age from 6 April 2016), which will increase to £221.20 per week, or £11,502.40 per year.

“This level of uplift follows the inflation matching 10.1 per cent boost that saw the 2023/24 state pension rise to £203.85 a week, or £10,600 annually.

“However, once again the triple lock and all its problems gets punted down the road for the next government to think about. There is a growing problem with the state pension and it’s unfortunate but not unsurprising that this government have not opted to make long term but potentially unpopular decisions about reforming how our state pension is uprated.”

Andrew Goodacre, CEO of British Independent Retailers Association (BIRA):

“Our main concern was any increase in business rates and we are pleased with the announcement that both the small business multiplier and the 75 per cent retail discount will remain unchanged.

“With consumer spending still sluggish, the last thing we wanted to see was an increase in the cost of running a shop, especially as we already know that the cost of labour will increase by at least 10 per cent. Away from business rates, we are concerned but not surprised by the low growth forecast.

“We need growth in the economy which in turn will increase consumer spending.”

Johnathan Dudley, Midlands and South West managing partner and head of manufacturing business at Crowe:

“The much-anticipated extension of full expensing may not directly benefit SMEs, but it at least confirms full tax deduction in the future... unless, of course, another chancellor reverses it.

“The measures for R&D need close examination but, when referring to life sciences, seem ominous for a manufacturing sector already struggling with a more robust R&D regime, and one which our research implies is disincentivising investment in innovation in the sector.”

Click here to read the reaction from Greater Birmingham Chambers of Commerce policy team. 

Alternatively, click here to read a detailed blog from on what the Autumn Statement means for business.

Nick Horton, managing director at Select Lifestyles:

“Although we didn’t see many of the Chancellor’s commitments directly relate to health and social care, his announcements on the increases to benefits and the living wage will be welcomed by many across the industry.  

 “As care providers, we support some of the most vulnerable people in society and appreciate the long hours that support staff dedicate to providing the best care possible. By increasing the living wage by almost 10 per cent to £11.44 an hour from April 2024, support workers working full time could see their earnings rise by £1,800 a year. 

 “This is something that we support as part of our commitment to being the employer of choice for health and social care roles in the West Midlands. However, now that the government has made a national commitment to the living wage, we are calling on Local Authorities to match these increases. 

“Businesses working to support people with disabilities will also be pleased to hear of plans to increase Universal Credit and other benefits by 6.7 per cent, supporting those who need it most through the cost-of-living crisis. The new Back To Work plan will also be a big help to people with disabilities – helping them to look for and stay in work by expanding the treatment and employment support available to them.”