Greater Birmingham business leaders react to Spring Statement

Chamber members have been reacting to the Spring Statement which was set out by Chancellor Rachel Reeves yesterday.

Headline announcements from the Chancellor’s statement included panning reforms, which the Government says will bring house building to a 40-year high, and a £2.2bn boost to the UK’s defence budget.

Ms Reeves also highlighted reforms to the pension system and a national wealth fund.

Here 's what some Greater Birmingham businesses had to say:

Nicky Owen, partner and Head of Professional Practices at Crowe

“In a ‘changing world’ it was disappointing to see that the Chancellor has not listened to UK businesses and that there was no U turn in the changes to employers National Insurance Contributions (NIC) that take effect from 6 April 2025.

“The NIC changes will impact businesses and will stifle much needed growth in the British economy.

“Businesses have already started reining in costs and looking at ways to reduce the workforce.

“This will have an impact on working people and the availability of jobs. A growing economy would bring in much needed increased tax receipts. 

“I am all for limiting and restricting tax evasion. However, I am concerned whether we have enough technically skilled people to run and deal with the investigations in a timely basis.

“An enquiry needs to get to the issue quickly and be dealt with promptly and not to leave taxpayers waiting for responses months on end because there isn’t a technically qualified individual that understands the issue.

“AI will assist in the process but again skilled people will need to analyse the results.”

Simon Rawlinson, head of strategic research at global consultancy Arcadis

“Rachel Reeves kept her focus on the big picture in her Spring Statement, highlighting increases in defence spending and capital investment without getting into the detail. 

“Confirmation of projects in favour will have to wait for the Comprehensive Spending Review as will the search for rebadged and reheated project announcements.

“The OBR's upgrades to growth figures from FY 26/27 onwards are welcome as is the assessment of the impact of government measures on long term growth. 

“It's worthwhile remembering that these come on top of big interventions in investment incentives and childcare by the previous government – growth is difficult and expensive to promote, but it may be worth it in the end.

“The construction industry will take comfort that the Chancellor focused on our sector in the speech rather than on health or education. 

“Our sector benefits from the borrow to invest fiscal rule.  Housebuilders may also start to breathe a sigh of relief as housing targets are adjusted in line with reality.

“1.3 million homes by the end of the parliament will still be in 'touching distance' of ambition, but the important thing is that changes to the planning system will make a permanent impact on growth.

Nick Wright, director, Jerroms Miller Specialist Tax

"Unsurprisingly, there was very little in the Spring Statement regarding tax changes.

“SMEs, in particular, were hoping for some relaxations to the increased employer National Insurance Contribution (NIC) rates, but unfortunately, no such adjustments were made.

“This leaves many small and medium-sized businesses continuing to grapple with the financial pressures of higher NIC rates.

“On a more positive note, the government announced a consultation to consider introducing an advance clearance process for the Research and Development (R&D) scheme.

“If implemented, this initiative could significantly enhance clarity and certainty for businesses claiming R&D relief.

“This move is expected to streamline the process, reduce administrative burdens, and encourage more SMEs to invest in innovative projects, ultimately fostering growth and competitiveness in the region."

Andrew Goodacre, CEO of the British Independent Retailers Association:

"While we welcome the Chancellor's focus on economic growth, we are deeply concerned that the Spring Statement has overlooked the immediate crisis facing independent retailers.

“Our members are confronting a perfect storm of rising costs – from the 140 per cent increase in business rates to the National Living Wage rise and National Insurance changes – all while consumer spending remains subdued.

"The Chancellor's forecasts of improved household income may offer some long-term optimism, but they do nothing to address the immediate cash flow challenges our members face.

"We specifically called for continued investment in our high streets, proper funding to tackle retail crime, and a statutory requirement for local authorities to prioritise economic development.

“It's disappointing that Rachel Reeves has not responded to any of these crucial areas in her statement today.

“If the government truly wants to 'deliver prosperity for working people,' as the Chancellor stated, they must not forget the thousands of independent retailers who provide jobs and services in communities across Britain."

"We urge the Chancellor to reconsider her approach before the full Budget in the autumn and engage meaningfully with the independent retail sector to prevent further closures and job losses on our high streets."

John Webber, head of business rates at Colliers:

“We don’t think the government is going in the right direction in terms of fulfilling its election manifesto to reduce the burden of business rates, which rather look set to increase in the years ahead.

“This Spring Statement has provided us with no reassurance that this current policy is set to change.”

Ben Standing, partner specialising in planning at UK and Ireland law firm Browne Jacobson:

“Putting the planning system front and centre of its economic growth mission is a wise call by the government, which is taking a refreshingly bold and speedy approach to clearing the road for future developments.

“But Westminster should be aware that none of these changes will offer a quick fix and reorganising the system at large isn’t going to solve the issues it wants to tackle on their own given there are other structural challenges, in particular around skills needs.

“A £600m fund to train up to 60,000 more construction workers across 10 new technical excellence colleges indicates recognition from the government about this.

“However, extra money must be complemented by a dedicated skills strategy that addresses the sticky issue of how to encourage young people to take up construction careers.

Naeem Arif, director of NAConsulting and president of Royal Sutton Coldfield Chamber of Commerce:

“It's not an easy thing to run the country, it is certainly more complex than running an SME.

“The announcements today would certainly not encourage business owners much - it feels like it will continue to be a difficult time to be an entrepreneur.

“The picture being painted is that the current economic challenges are too deep to be solved quickly. The timelines for a recovery of the economy are years.

“Maybe this is related to the uncertainty internationally, but locally, it does not give us a lot of confidence for expansion or growth.

“Whilst we cannot keep ‘giving away free money’, we are paying the true cost for the last five years of reduced productivity and increased government borrowing to pay for things like furlough and bounce back loans. 

“I am an advocate for cutting benefits, where appropriate, in order to encourage more people to be in paid employment which will in turn contribute to our country's productivity.

“I welcome the investment in getting people back to work and the capital spend initiatives around housebuilding which is positive.”

Ann Tonks, director of Chapter restaurant:

“The Chancellor’s spring statement proves that this is not a Chancellor who understands the fundamentals of growth.

“To preside over an economy where the growth forecast has been slashed to just 1 per cent, where more children will be drawn into poverty through deep welfare cuts, and where businesses are driven into further crisis is disgraceful.

“Our hospitality sector, which is dominated by SMEs struggling to survive, did not expect a lifeline from Rachel Reeves, and she delivered what we feared.

“From April, with eyewatering increases to taxation, more businesses will fail.

“The attack on business is relentless – this is simply  a ‘no growth’ government. Their handling of the economy is a huge disappointment and will lead to broken communities.”