Hampshire Chamber of Commerce says businesses will be "lacking in confidence" after Budget
It comes after Rachel Reeves announced the Budget yesterday afternoon
The Hampshire Chamber of Commerce says businesses will "continue to be cautious and lacking in confidence" after yesterday's Budget announcement.
It comes after Rachel Reeves announced the Budget yesterday, which included tax exemption for small packages from overseas retailers worth under £135 scrapped from 2029, following complaints it hinders UK businesses.
Hampshire Chamber of Commerce is the independent voice of local business across the county.
Ross McNally, Hampshire Chamber of Commerce Chief Executive and Executive Chairman, said: “The Chancellor had already said she would avoid putting further headline tax rises on businesses but nothing she has announced now will put a spring in the step of Chamber members.
“They continue to face the impact of costs imposed in the previous Budget which will stay as a general drag on hopes for economic recovery.
“And it will be businesses that ultimately pay for the rise in the minimum wage coupled with the freezing of tax thresholds and higher welfare spending.
“All of that simply piles more pressure on beleaguered firms responsible for payroll and tax receipts, essentially funding it out of earned income.
“There was precious little this time round that will transform the confidence of consumers, employees or employers, so to that extent it was a missed opportunity to create an economy that is moving.
“Industrial strategy and efforts to stimulate international trade were hardly mentioned at all and we believe the Chancellor could have taken far more risks on business support and investment, tax breaks and, despite some lowering of costs for hospitality businesses, business rate reform.
“Most businesses will continue to be cautious and lacking in confidence after today.
“That said, there was some good news on skills with the announcement that funding will be provided to make under-25 apprenticeship training completely free for SMEs (small and medium-sized enterprises).
“We also welcome the commitment to increase defence spending and the Chancellor’s reference to Portsmouth as playing a key role in that sector.
“Overall, we don’t believe this Budget recognises that it is businesses which ultimately drive the economy and create the prosperity to fund those essential public services we all rely on.
“We wanted to see business-friendly measures that support growth and turn around years of weak UK productivity, but what we have, at exactly this pivotal moment for an already stretched economy, is continuing cost pressure."
Among other topics in the Budget, it was also announced inflation is predicted to average 3.5% this year, before falling to 2.5% next year, and returning to the government's 2% target in 2027.