Business leaders in Essex say Chancellor’s Budget came as “no surprise”

Industry leaders in Essex wanted to see urgent action in the Chancellor’s Budget to support business growth.

Jeremy Hunt announced yesterday (6 March) reductions in National Insurance by two per cent, froze duty on fuel, and enhanced support for childcare to encourage more people back to work.

Other announcements included alcohol duty being frozen and investment in creative and green industries.

Essex Chambers of Commerce has been backing the British Chambers of Commerce’s (BCC) call for the Chancellor to work in partnership with business to develop a sustainable growth plan.

The BCC’s Budget submission included calls for Government to match industry-led funding of £3m for planning qualifications to help plug the lack of local resource.

It is also wanting Ministers to commit to fund business-led Local Skills Improvement Plans (LSIPs) beyond the current 2025 cut off point to at least 2028.

The Chamber wants the VAT registration review to be restarted with a view to removing the existing cliff edge and says that Government should reform business rates to make it a tax that incentives growth.

The final ask of the Chancellor was to introduce a new internationally competitive tax-free.

Iain McNab, Head of Policy at Essex Chambers of Commerce, said: "We would have liked to see some sort of general or more detailed plan for the economy. We've supported the British Chambers of Commerce in pressing Government for something like that.

"Similarly some other measures, including cementing of local skills improvement plans, to really tackle the skills deficit in the UK."

Iain McNab said the Spring Budget’s key feature was cutting tax.

He said: "There's almost nothing of the budget that came as a surprise. The key feature of it was clearly the 2% cut in National Insurance, which was quite widely trailed before the budget. That will put more money in people's pocket, therefore, they've got more money to spend on local businesses. It's pretty much all around the National Insurance cuts, which will have a modest impact."

The Essex Chamber of Commerce wants to advise local businesses to seek support if needed.

Head of Policy, Iain McNab, said: "We would like our members to keep us informed of what they're experiencing so that we can better lobby for measures which will help them."

Shevaun Haviland, Director General of the British Chambers of Commerce, said: "As businesses continue to chart a course through choppy economic waters, they want to work in partnership with Government to get the UK economy growing again.

"Our latest research shows that many SMEs are struggling because of business rates, and are limiting their expansion plans because of the VAT threshold.

"Attracting, retaining, and developing people with the right skills is crucial for business. But far too many employers are struggling to do that. Business-led Local Skills Improvement Plans (LSIPs) are key to resolving skills shortages."

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