Spring Statement: Very little to put a spring in the step of businesses - Chamber

The Chancellor’s Spring Statement offered very little that will put a spring in the step of businesses, Greater Birmingham business leaders said.

However, Greater Birmingham Chambers of Commerce said firms will be relieved that further takes hikes were not among Rachel Reeves’ announcements.

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.

While there were no further tax rises, the Chancellor claimed she will raise an extra £1bn with a further crackdown on tax evasion.

Raj Kandola (pictured), director of external affairs at Greater Birmingham Chambers of Commerce, said: “Businesses will breathe a sigh of relief that the Chancellor hasn’t chosen to hammer them with further tax hikes given the additional cost pressures that many are dealing with following the announcements she made last October.

“The Chancellor decided to keep her statement high level, but the facts remain clear – growth projections for this year are down and spending cuts have been made in order to restore the Chancellor’s self-imposed rules for fiscal headroom.

“Firms will be pleased to see a focus on planning reform and increased capital investment in order to unlock growth which aligns with the recommendations made by the Business Commission West Midlands this time last year.

“The additional focus on increased defence spending was accompanied with promising statements on the need for British businesses to directly benefit from the associated procurement opportunities.

“Hopefully this will benefit businesses in the West Midlands given our expertise in the field of advanced manufacturing, as there was next to nothing announced for our region.

“The upcoming Comprehensive Spending Review should shed more light on the direction of travel for business support programmes and how they will impact firms in the region.

“Ultimately, there was very little announced in the Chancellor’s statement that will give businesses an extra spring in their step as they approach the summer - for example, no roadmap on reducing business costs and very little on boosting international trade activity.

“The Chancellor has got a big job on her hands to restore confidence and unlock firm level investment.”

• What does the Spring Statement mean for your business? Read this comprehensive blog from the GBCC policy team.