Business experts in Gloucestershire react to spring statement

Business experts in Gloucestershire say they have concerns following the Government’s spring statement announcement.

The statement provided updates on the economy and Government finances to parliament and the nation.

Key points in the statement included:

• The Office for Budget Responsibility halved its forecast for growth in gross domestic product in 2025 from 2% to just 1%.

• An additional £2.2 billion to the Ministry of Defence’s budget for next year.

• Universal credit standard allowance will increase from £92 per week in 2025-26, to £106 per week by 2029-30

• The Universal Credit health element will be cut by 50% and frozen for new claimants.

• The Government’s planning reforms would “help build over 1.3 million homes” in the next five years.

What is the reaction?

Cheltenham’s Liberal Democrat MP Max Wilkinson said he is disappointed with the statement.

He told Greatest Hits Radio Gloucestershire what he had hoped for “Getting rid of the jobs tax that they are imposing on businesses in my constituency and across the country.

“Also doing more to make sure that we fix the NHS and fix social care so we can get people who are on welfare benefits because they are unwell back into work and paying tax.”

The Director for Business West in Gloucestershire has echoed the concern from Wilkinson and says businesses are worried about national insurance rises coming into place next month.

Ian Mean told Greatest Hits Radio “The small firms who might want to take on an apprentice, they won’t be doing that.

“Overall, I think it’s pretty gloomy, I think the OBR decision on growth being cut to 1% is not a good message to investors either.”

He did however say that there could be some economic benefits locally for the county

“I think Gloucestershire could well benefit from an increase spend in defence.

“Looking to the future, the golden valley project in Cheltenham, although it’s in its very infancy, that could be a great help.”

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