Mini-budget: York bosses say it 'doesn't go far enough'

Adam Wardale, chairman of Hospitality Association of York said: “The reality is that the Chancellors announcement is not enough, and has missed crucial areas that businesses and associations have been asking the government to support on.

"VAT and business rates have been left out which would have supported businesses better over the coming months.

"The increase in interest rates will be detrimental as the consumer sees further increase on their bills, the announcement earlier in the week of the cap on energy rates did not go far enough, as businesses and consumers will still be looking at major increases on their utility bills based on previous years.

"The coming months will be testing for both without further targeted support from the government."

Andrew Lowson of York BID (Image: Andrew Lowson of York BID)

Likewise Andrew Lowson, executive director of York BID said: “"‘For certain sectors including retail, hospitality and leisure, I don’t think this goes far enough. 

"The Chancellor has overlooked VAT and business rates which is what BIDs and other trade associations have been campaigning on in the lead up to this. 

"Our VAT is the highest in Europe, which doesn’t chime with ambitions for global tax competitiveness. 

York's business community is also responding to the budget.

David Skaith, founder of the York High Street Forum said:

"The cut to VAT for overseas visitors will help with tourist spending in city’s like York and cut to cooperation tax will help those businesses that are making a profit, the issue is many businesses are struggling to make a profit so this may not help much.

"No talk of business rates which is incredibly annoying, this is the biggest impact to businesses and needs addressing straight away.

David Skaith (Image: pic supplied)

"Removing the cap on bankers bonus's makes little sense, this isn’t going to help grow the economy.

"At a time when we are taking on £45B in borrowing, we are also cutting tax, mostly for the wealthiest people from 45% to 40%, meaning the rich will becoming richer once again while the lowest earners will see very little while bills are rising all the time, the trickle down economy, which is what they are trying to do, doesn’t work. 

"Also, not cut to VAT is a big miss, would really help hospitality in particular."

The Leeds Chamber of Commerce appeared more positive.

President Mike Briffett welcomed the reversal of the National Insurance increase.

Investment Zones and transport upgrades were also backed, especially West Yorkshire Mass Transit and the dualling of the A1237 York Outer Ring Road.

Adam Wardale of HAY (Image: Newsquest)

He said: “This is a bold start and we now await further detail on the further reforms the Treasury announced, to see if this will develop into a comprehensive long-term economic strategy. 

“All eyes will also now turn to the forecasts by the Office of Budget Responsibility in the autumn for reassurance on public finances.”