In response to the Chancellor’s Spring Statement, Raj Kandola, 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 clobber 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 the 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 today’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.”
