Business and industry leaders have welcomed elements of the Chancellor’s Spring Budget but feel it has fallen short in key areas.
Efforts to encourage people to return to work – including apprenticeships for the over 50s and a free childcare scheme expansion – have been applauded. But the Government was called out for its lack of targeted support for industries committed to decarbonisation, such as ceramics, and a lack of help in paying energy bills.
Finance experts said that taxpayers would be left “underwhelmed” and only time would tell whether measures would or could stimulate the economy.
Meanwhile, news that Stoke-on-Trent has been chosen as one of 20 areas to benefit from a new £400 million Levelling Up partnership has been welcomed in the city.
In a wide-sweeping set of announcements, Jeremy Hunt delivered what has been dubbed his “back to work budget”. It was set against a forecast that the economy would grow by 1.8 per cent in 2024 and 2.5 per cent in 2025, while inflation is expected to fall to 2.9% by the end of this year.
Chair of Staffordshire Chambers of Commerce’s Money Matters Forum Chris Alderman, who is Tax Director at RSM’s Stoke-on-Trent office, said: “The Chancellor promised a ‘Budget for Growth,’ but many taxpayers would be forgiven for feeling somewhat underwhelmed by the measures announced from a tax perspective.
“Only time will tell whether the changes announced do anything to address the UK’s low productivity and inspire the ‘economically inactive’ into work.”
An in-depth Daily Focus summary of Chris’ analysis of the key announcements can be found here
British Ceramic Confederation Chief Executive Rob Flello said: “As an industry that is facing staffing shortages and skills challenges, the Chancellor’s move to encourage more people back into the workplace, especially the ‘returnerships’ for the over-55s, is to be welcomed.”
“We also note the timely introduction of full capital expensing. The finer detail needs to be examined on what the qualifying plant and machinery is, but UK ceramics is an industry that is focused on decarbonisation, with companies already investing £600m of their own money into decarbonisation projects over the past 10 years.”
And he added: “It is time the Government recognises that the essential contribution UK ceramics makes to decarbonisation goes beyond the sector’s own net zero transition.
“Without ceramics, the production of renewable energy is hampered as, without refractories, there is no steel for wind turbines and no glass for photovoltaic panels. Ceramics are needed for electric vehicle batteries. Without high temperature industrial processes, there are no durable homes or commercial properties. There is no heat from waste without advanced ceramics.
“UK ceramics is critical to UK manufacturing, construction, and net zero and Government needs to provide more targeted support.”
Shevaun Haviland, Director General of the British Chambers of Commerce said it was good to see the Chancellor acting to address the unfilled jobs “blighting our economy”.
However, she warned: “Almost half of businesses have told us they will struggle to pay their energy bills from April, and they cannot invest when they are fighting to survive. There is little in today’s announcement that will provide comfort to these firms.
“The Government failed to reform business rates which we have repeatedly called for. If the UK’s innovative growth industries are to remain competitive on the world stage, then Government must shift the dial further on investment, both within the UK and from overseas.”
Stoke-on-Trent City Council Leader Abi Brown said she welcomed the commitment from the government regarding the newly-announced Leveling Up funding and said she was “proud of the strides forward” the city was making.
And Alan White, Leader of Staffordshire County Council, said: “On the day that the Council has approved an extra £30 million over two years to be spent maintaining and improving our highways, on top of our annual £50 million road maintenance budget, I am pleased to hear that the Government is providing more money to tackle potholes.
“Spending on our huge road network as part of good physical and digital infrastructure is an essential requirement to successfully support business growth in Staffordshire, but so too is having a good, educated workforce on hand, which is why I welcome the new support to encourage people back into work.”
- Full budget details, including the Chancellor’s speech can be accessed here
