The British Chambers of Commerce (BCC) said the cut to National Insurance Contributions provided “some momentum” – but there was still a need to shift the dial on conditions for business.
The BCC approved Jeremy Hunt’s support for its business-led programme to unlock the planning system as well as his announcements on the Growth Guarantee Scheme and increasing the VAT threshold.
However it expressed the opinion that a more fundamental review of the VAT system was necessary.
Shevaun Haviland, Director General, said: “Following the Autumn Statement this budget was always set to deliver less for business although changes to National Insurance will provide some momentum.
“However beyond this there were no major announcements to help shift the dial on conditions for business.
“The clock is now ticking to the General Election – and this Budget could be the last fiscal event before voters go to the polls.
“Business confidence is improving but the coming months will remain challenging for many companies. It is vital that the economy remains front and centre of the campaign to come.
“The prospect of an additional 200,000 entering into the workforce, due to cuts in National Insurance, would make a significant dent in the job vacancies holding back our economy. It will also provide a welcome boost to economic growth.
“Combined with the increased child benefit threshold, this should help business find the staff they so desperately need.
“Increasing the VAT threshold to £90,000 from April will help SMEs in our Chamber network to grow and invest but a more fundamental review is required.”
The BCC expressed disappointment that the Chancellor failed to mention a new internationally competitive tax-free shopping scheme.
The Federation of Small Businesses (FSB) backed the increase in the VAT threshold as well as the cut to National Insurance contributions.
They also approved a package of support for small business including focus on reducing HMRC red tape and the roll-out of an energy advice service for firms.
However the FSB regretted there wasn’t more help offered to tackle rising costs for business.
Policy Chair Tina McKenzie said: “We welcome the increase in the VAT threshold as well as the cut to self-employed National Insurance Contributions.
“Elsewhere, we were pleased to see a package of small business support in the Budget documents, including commitments to make progress on the HMRC administrative burden and on the national roll-out of the Business Energy Advice Service, as well as extending the Recovery Loan Scheme under a new name – the Growth Guarantee Scheme.
“That said, many of those running businesses face serious challenges – not least through rapid hikes in in labour and input costs – and many would have understandably hoped that there would be more measures announced that would help ease the tough decisions small employers are having to make day-in-day-out to keep their business going.”
The FSB were hoping that the £5,000 Employment Allowance might have been uprated to keep pace with the National Living Wage.
There was little or no mention of transport in the Budget which dashed hopes in Staffordshire of immediate announcements on big transport infrastructure schemes like the Fifty500 Midlands Growth Corridor project, M6 junction 15 improvements and railway station plans.
