Chancellor’s growth push welcomed but concerns remain for businesses - Chamber

Business leaders in Greater Birmingham have welcomed Rachel Reeves’ commitment to stimulating the economy.

But there was also disappointment that the Chancellor’s ‘growth speech’ made little reference to supercharging growth in the West Midlands.

The Chancellor used yesterday’s speech to set out her support for a third runway at Heathrow Airport.

Reeves also backed expansions at Luton and Gatwick airports, as well as a “growth corridor” between Oxford and Cambridge, which she claimed could be “Europe's Silicon Valley”.

But there was no reference to Birmingham Airport in the speech.

For the West Midlands, the government has confirmed support through the National Wealth Fund, which will help develop regional projects linked to growth priorities.

A £7.9 billion investment in water infrastructure, including a new reservoir in the region, was also announced.

Greater Birmingham Chambers of Commerce welcomed the Chancellor’s broader commitment to growth but said businesses need more support from Government to address some of their exiting challenges.

Emily Stubbs (pictured), head of policy at the GBCC, said: “As the Chancellor said, thriving businesses are key to creating wealth, jobs and new opportunities.

“It was encouraging to hear that the government recognises the importance of building on trading relationships, particularly with our EU counterparts.

“This was one of the recommendations in the Roadmap for Business Growth, published by our Business Commission West Midlands last year.

“While the West Midlands is now a strategic partner of the new National Wealth Fund, it was disappointing to hear little on the government’s ambitions to propel growth in the region by supporting anchor institutions such as Birmingham Airport.

“The Chancellor's refusal to rule out further tax increases in the Spring will also be deeply concerning for many businesses.

“We would urge the government to urgently address the price pressures which remain prevalent for the majority of firms in the region, particularly with the business tax rises announced in the recent Autumn Budget on the horizon. 

“Businesses need a clear plan from government on how they will reduce these cost pressures in the coming months - particularly when it comes to minimising trade disruption, making it easier to hire staff and reducing energy costs.”

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