FSB Hampshire, Dorset and Isle of Wight disappointed after spending review

Small businesses across the south are disappointed with the outcome of today's spending review.

Nicky Kildunne, Development Manager for Federation of Small Businesses for Hampshire, Dorset and the Isle Of Wight, told us:

"Well to be honest small businesses will be wondering when they're going to feel the benefits of today's spending review. It definitely wasn't the business focused review that we'd hoped for, so disappointing to be honest."

"The one bright spot from today's spending review was the significant increase in resources to the British Business Bank. We've been campaigning for it, ahead of today, and, you know, it's a very welcome announcement. And, yes, we do think that this is going to see a lot more finance flowing through to local businesses up and down the country."

"AI is definitely something that is, a growing interest for small businesses. I think there's certainly an appetite to want to know more, to understand, you know, how exactly AI can be transformative for businesses. There's certainly an appetite there for it. I think the difficulty is, to actually, you know, incorporate AI really effectively into a business is a huge change program for a small business."

"So I think, you know, as long as the support for AI, is practical, I think that's a positive thing. You know, certainly, AI has the potential to transform productivity. So, that, you know, maybe there's some good news there."

"The the general feeling is that, you know, small businesses aren't going see in it, you know, much of a difference from the spending review into their budgets.

Aside from the fact that the British Business Bank will have more money to, you know, to, lend to small businesses in terms of start up and growth. That's a positive thing. But in terms of, some of the other things, you know, businesses are feeling quite disappointed. "

Chancellor Rachel Reeves has announced investments into the business sector including £2 billion for an artificial intelligence (AI) action plan and funding into small businesses.

She told the Commons: "Because home-grown AI has the potential to solve diverse and daunting challenges, as well as the opportunity for good jobs and investment in Britain, I am announcing £2 billion to back this Government's AI Action Plan, overseen by the Secretary of State for Science and Technology (Peter Kyle)."

She added: "To champion those small businesses seeking access to finance as they look to grow I am increasing the financial firepower of the British Business Bank, a two-thirds increase in its investments. Increasing its overall financial capacity to £25.6 billion, to help pioneering businesses start up, and scale up, backing Britain's entrepreneurs and wealth creators."

Earlier in her speech, the Chancellor also confirmed a £500 million grant to Tata Steel for its Port Talbot site.

The Government's £39 billion spending on affordable and social homes has been confirmed by the Chancellor, as she said she wanted to ensure people had the "security of a proper home".

Rachel Reeves told MPs Labour's planning reforms had increased opportunities to build homes. She said it was the biggest increase in half a century.

She said: "A plan to match the scale of the housing crisis must include social housing neglected for too many decades, but not by this Labour Government."

She continued: "Led by (Angela Rayner), we are taking action. I am proud to announce the biggest cash injection into social and affordable housing in 50 years. A new Affordable Homes Programme - in which I am investing £39 billion over the next decade.

"Direct Government funding that will support housebuilding especially for social rent and I am pleased to report that towns and cities including Blackpool, Preston, Sheffield and Swindon already have plans to bring forward bids to build new houses."

Extra money will be spent on training and apprenticeships to stop people being "turned away at the door".

Rachel Reeves said the £1.2 billion funding increase was needed to help people "thrive in the industries of the future". She listed careers including scientists, engineers, designers as well as builders, welders and electricians.

She said: "I know the ambition, the drive, the potential of our young people. And it cannot be right that too often those ambitions and that potential are stifled when young people who want training find courses oversubscribed turned away at the door forcing growing businesses, eager to recruit that talent, to look elsewhere. Potential wasted and enterprise frustrated."

Rachel Reeves said her fiscal rules have allowed her to allocate £190 billion more to the day-to-day running of public services over the course of the spending review.

In a statement on the spending review, the Chancellor told the Commons: "My first rule is for stability, that day-to-day government spending should be paid for through tax receipts. That is the sound economic choice and it is also the fair choice, because it is not right to expect our children and future generations to pay for the services we rely on today.

"This first rule allows me as I set out in the budget to allocate £190 billion more to the day-to-day running of our public services over the course of the spending review, compared to the previous government's plans.

"My second fiscal rule enables me to invest in Britain's economic renewal while getting public debt on a downward path. This rule has allowed me to increase public investment by over £100 billion in the autumn, and a further £13 billion in the spring.

"Investment to rebuild our transport network, to rebuild our defence capability and to rebuild our energy security. In short, to grow our economy."

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