Responding to Chancellor, John Healey’s, speech at the Labour Party Conference, Shevaun Haviland, Director General of the British Chambers of Commerce, said:
“This was a significant speech. The Chancellor clearly recognised the importance of business in creating the UK’s wealth and that cutting their costs is key to achieving that.
“His pledge to use public procurement to back British capability also shows he understands its vital importance in driving regional growth.
“But smaller firms must be able to compete for contracts on a level playing field. The test now is whether new projects, such as the £6bn for British shipyards, are delivered quickly, with clear pipelines that give businesses the confidence to invest in people and capacity.
“But this strategy is unlikely to succeed while the everyday cost of doing business is still soaring. Firms are being asked to invest while facing a tsunami of rising costs from employment, energy and business rates.
“For a typical SME their policy related operating costs have increased by more than 70 per cent in 10 years. The Budget must give them breathing space, avoid any further tax rises and cut some of these costs.
“The Chancellor rightly called out the deplorable situation where we have almost one million young people not in employment. The expansion of apprenticeships is welcome, but this will only be successful if the voice of business is heard.
“Local Skills Improvement plans have taught us this works best when employers are engaged through organisations such as Chambers.
“But he must go further on youth unemployment, a cut in employer National Insurance contributions for under-25s, will help firms create more opportunities for them.
“He should also consider reducing energy bills for firms, by cutting the Renewables Obligation by 75 per cent, and lowering business rates multipliers.
“Reindustrialisation must be outward-looking. Consistent, locally delivered export support would help more SMEs reach new markets and turn British innovation into sustainable growth. And as AI transforms our economy, this new era must support the growth industries of the future.
“Alongside that, businesses need long-term certainty on skills, planning, infrastructure and a roadmap to reduce the tax burden.
“The Chancellor should apply a growth delivery test to all of his budget decisions – will his measures prompt firms to do take positive action they would not otherwise have taken?”