The pre-election budget from Chancellor Jeremy Hunt has received a mixed response from the York and North Yorkshire business community.

The West & North Yorkshire Chamber of Commerce has welcomed forecasts that inflation is to fall below 2 per cent in the coming months and economic growth will be better than a forecast 0.8 per cent.

The Chamber also welcomed the Chancellor’s announcement that he would be raising the VAT threshold from £85,000 to £90,000 as well freezing alcohol duty for an additional 12 months – two measures that will particularly benefit the hospitality industry.

There was support for the freezing of fuel duty for a further 12 months, plus backing for 40 per cent relief on business rates for film studios until 2034, given the film studio that exist in Sherburn-in-Elmet and other parts of the county.

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Combined with a new tax credit on small independent films and further tax relief for visual effects, are all welcome news for the region’s economy.

Our strong life sciences sector will also benefit from the £35m investment in disease treatment.

However, the lack of any announcements on transport infrastructure is something that will disappoint businesses in the region who are eager to learn of future spending plans.

Amanda Beresford, chair of West & North Yorkshire Chamber of Commerce, said: “The improved economic forecasts from the OBR are welcome pieces of news given how concerning recent figures have been.

“Declining inflation and improved growth forecasts are encouraging updates after so many months of uncertainty.

“Measures to increase the VAT threshold will save many businesses from paying extra tax and freezes on fuel duty will help control companies bottom lines.

“It was also refreshing to see our creative and life sciences industries handed support, particularly given Yorkshire’s strengths in these sectors.

“However, what was missing was a long-term plan for our infrastructure. The cancelling of HS2 has left a gaping hole about our future connectivity and until this is addressed our productivity will continue to struggle.”

Andrew Lowson, executive director for YorkBID said: “Businesses from York have already told us that 2024 will be one of tight margins and I do not think this budget will alter that option. There are small rays of sunshine on falling inflation and an upturn in economic growth which may help consumer confidence. 

“However, with many of our city centre businesses operating in the retail, hospitality and leisure sectors, support on major overheads such as business rates, energy prices and staffing is what industry bodies have been calling for and once again they have been ignored.”

David Skaith, high street campaigner and Labour candidate for the York and North Yorkshire mayoralty, said: “Really this budget does very little to help people. A two percentage cut in NI on the face of it sounds great, but with the cost of living still extremely high, this reduction won’t be felt.

“Add into this the severe financial pressures councils find themselves in due to massive cuts to funding, a rise in council tax will also negate any tax cut the government will make.”

The owner of Winston’s clothing store added: “The chancellor is also showing how out of ideas he is when you see him directly taking Labour policies and making them his own. The nom-dom tax is what Labour have been calling for but the Conservatives have finally decided to implement it. This is just a short term effort to try and win votes for the upcoming election. Nothing more than that.”