Member Article

CBI Budget reaction

Commentary by Sarah Green, Regional Director for the CBI North East

The key question for this Budget was whether it set out a credible and rigorous path for restoring the public finances to health. The CBI’s preliminary judgement must be that it does not. The Chancellor’s economic forecasts for next year and beyond look optimistic. By pushing out the horizon for balancing the books as far as 2018 the Government is running too much of a risk.

On the fringes of this Budget, there are some worthwhile micro measures, including support for businesses struggling to access trade credit insurance, and for carmakers through a time-limited scrappage scheme. With exporters and the automotive sector being key parts of the North East economy, the region should reap some benefits from these measures. The changes on investment allowances and the ability for firms to carry forward losses are also welcome.

Taking the Budget as a whole, a lot will depend on how far the Government can reduce public expenditure growth through public service reform and cultural change.

This was posted in Bdaily's Members' News section by Ruth Mitchell .