A leading business group has given mixed reviews to today’s Spring Statement from the Chancellor.
As reported earlier today, Chancellor Rachel Reeves admitted in her Spring Statement that the Office of Budget Responsibility had halved its growth forecast for the year from 2 per cent to one per cent.
But the Labour chancellor said the OBR had increased forecasted growth in future years due to reforms in planning legislation.
Amanda Beresford, chair of West & North Yorkshire Chamber of Commerce, said: “While it is disappointing to see the OBR half its growth forecast to one per cent for this year, it is pleasing to see an improved outlook for the coming years.
RECOMMENDED READING:
- York Central MP Rachael Maskell responds to Spring Statement
- Labour MPs urge Rachel Reeves to rethink cuts to health and disability benefits
- Chamber demands government acts over construction skills
- North Yorkshire chamber reports post-budget business slump
- West and North Yorkshire Chamber welcomes Reeves measures
“Following the hugely disappointing increases to National Insurance Contributions for businesses in the autumn Budget, it was pleasing that the Chancellor kept her word and did not increase any further axes for businesses during her statement.
“The news that small firms will be able be able to bid for contracts as the Government bolsters defence spending is also a welcome innovation.”
Whilst York Central Labour MP has spoken out against planned cuts to welfare, the Chamber appears more supportive.
It also welcomes measures to help train people to work in construction, something it recently demanded, backed by leading training providers, such as York College.
Ms Beresford continued: “The £1bn allocated in order to get more people back into the workforce is one that businesses will welcome as they continue to wrestle with recruitment challenges. We await further details on how this money will be used with interest.
“The £600m allocated by the education secretary to train more construction workers is good news for our region as we prepare to embark on a series of major regeneration ad infrastructure projects such as York Central and Mass Transit.”
However, the Chamber has warned that earlier measures, announced last Autumn in the Chancellor’s have damaged business, as revealed in its regular business surveys.
Ms Beresford added: “The government must focus on reducing the cost pressures for businesses, boosting investment and exports. Our research shows 82 per cent of businesses will be impacted by the NI hike.
“In addition, the financial impact of the Employment Rights Bill has yet to be assessed by the OBR, but they expect it to be negative. The threat of US tariffs also looms large.
“With rising costs and sky-high levels of taxation making investment decisions very difficult.”
Share