Business leaders across the Midlands this afternoon gave a mixed reaction to the Chancellor’s Spring budget announcements.
Michael Harte, managing director of Telford-based Bridge Cheese, which supplies cheese and dairy products to food manufacturers and the food services sector, said he welcomed moves to put more money back in people’s pockets – but said the Government had to remain fully committed to the Net Zero agenda.
Michael, whose business has grown turnover to £30million in five years, said the cut in National Insurance would help many families across the country struggling with the cost of living.
“It’s vital that we allow people to keep as much of their own money as possible to spend on the things they most need, so this was certainly a welcome step.
“There was also some good news in there for business – measures to extend the full-expensing process which lets us claim tax relief on investment are really welcome – but I wanted to hear more about the drive to Net Zero.
“It’s clear that we cannot row back from our legally-binding promises and we need to see a concerted drive from all in power to help us meet our responsibilities.
“Here at Bridge Cheese we have introduced a scheme to recycle more PPE and improve our transport efficiencies which is already cutting our carbon footprint. There must be more incentives for all firms to follow our lead so that we develop a truly national response to climate change.
“This is an election year and the Chancellor had little room for manoeuvre, but we cannot afford any change of direction on our Net Zero plan if we are to pass on a healthy planet to future generations.”
Graham Corfield, chief executive of Telford-based Aviramp, which manufactures award-winning boarding ramps and bridges for the aviation industry said the rise in Airport Passenger Duty on non-economy flights was hugely disappointing.
“Business travel is an essential part of developing new markets and winning new contracts and maintaining the UK’s position as a global player. This increase will make the cost of doing business more expensive and reduces UK companies’ ability to compete with global rivals.
“A new increase in APD was already due to come into force next month taking the tax up to £202 on the longest international flights, and this new raise will simply add further to the costs facing UK businesses on the world stage.
“It will also be bad for this country’s airports and aviation industry in general, with the likely reduction in passenger numbers having a direct impact on the industry’s ability to invest in a world-class infrastructure.”
Neil Lloyd is managing partner of Midlands law firm FBC Manby Bowdler and Chairman of the Training and Manufacturing Group.
He said the world-class makers of the Midlands would welcome funding packages for research and development announced by the Chancellor, but the sector needed more than just Government financial investment to meet current challenges.
“Although I welcome the investment pots, which include £200m for developing sustainable aviation and automotive tech, we need to have wrap-around support for companies if they are to deliver on the funding potential.
“That means a long-term industrial plan, support for skills development, planning reform to free up sites for expansion and an import and export strategy to combat the ongoing effects of Brexit.
“The Advanced Manufacturing Plan announced at the Autumn Statement was a step in the right direction, but with the next general election looming and the potential for a new government to be at the wheel by the end of the year, this means more uncertainty for businesses.
“We have a proud manufacturing history in the West Midlands, and that includes Shropshire – the birthplace of the Industrial Revolution.
“A world-leading manufacturing sector needs a world-leading economic strategy which promotes growth, skills improvement and innovation. The reality is that we may be waiting a while for it.”
Kevin Stevens, managing director of the Warwickshire-based E5 Group, which has interests in property, social care and minerals, said: “We know there is likely to be a general election in the second half of the year, so this budget is very much a reflection of that.
“Moves to put more money in people’s pockets through the National Insurance cut Mr Hunt has announced are generally welcome, but we had hoped for a bolder statement on Stamp Duty.
“One thing I would say to all the parties in the forthcoming election is that if you are really serious about getting this country growing and improving people’s lives, you need to get to grips with both our outdated planning system and the huge amount of bureaucracy in business.
“Let’s speed up the approval process for developments which generate real progress and cut the amount of red tape which stops businesses like ours doing what we are best at. That would be a real manifesto for growth.”
Award-winning Vantage & Co – the current overall Federation of Master Builders (FMB) Master Builder of the Year which is based at Lapworth – says many of the longer-term measures announced today were entirely dependent on the outcome of the election.
Managing director Stephen Rankin said: “We support some of the moves to help small businesses such as ours invest in our workforce and our future so that we can play our part in building a stronger economy in the years to come.
“We certainly didn’t expect any of the fundamental changes we would like to see – such as reforms to the planning system, business rates and a reduction in red tape – in this statement because the Chancellor has such a strong eye on the election.
“There’s no doubt that the prospect of going to the polls in the next six months has cast a long shadow over today’s Budget.
“Any party which wants our vote in that election must put business at the heart of its agenda and ensure that some of the barriers to growth and construction which have stalled development in this country are quickly swept away.”
