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C&W Chamber Autumn Statement reaction

The survival of thousands of SMEs across Coventry and Warwickshire could be dependent on the speed and accuracy of newly-announced business rates support, according to the region’s business leaders.

Business rates are set to rise in April 2023 in line with inflation, placing added financial pressure on companies. However, in his Autumn Statement, Chancellor Jeremy Hunt confirmed a £14bn package was being introduced to help soften the blow of rising costs.

Corin Crane, Chief Executive at the Coventry and Warwickshire Chamber of Commerce, chaired a panel of businesses – sponsored by Prime Accountants Group - that came together to watch and react to the Autumn Statement.

He said: “Most of these announcements are based beyond the next election where a lot of the difficult decisions on tools for growth – such as long-term funding in infrastructure and apprenticeships – are being pushed beyond the life of this government.

“This is all at a time when businesses are grappling with a cocktail of issues that are putting increasing pressures on their outgoing costs – such as a broken business rates system, rising energy bills, and spiralling wage demands in a bid to fill vacancies.

“The business rates system is outdated and broken – as it is out of touch with the economic realities that companies are facing – and so while we welcome the support package in this area, the speed, accuracy and business-focused recommendations of next year’s rates review could make or break thousands of businesses.

“The budget hasn’t really helped to address the long-term issue that businesses are having with filling skilled vacancies, and further clarity is needed from the government on how this generational problem is going to be addressed.

“That said, I am glad the commitment to investment zones still stands at a time when our need for a UK Gigafactory based in Coventry and Warwickshire is critical, and we hope progress here is now quick and commercially focused.”

Reacting to the Chancellor’s Autumn Statement, BCC Director General, Shevaun Haviland, said: “The Chancellor has stayed true to his word in focusing on financial stability and targeting support for the most vulnerable in society. But in the teeth of a recession, this statement will not increase business confidence.

“Businesses will look at today’s announcements and welcome support with business rates, and retention of the employment allowance, though the reduction in the dividend allowance will impact many smaller firms.

“Almost half of businesses tell us they will find it difficult to pay their energy bills once the Government’s Energy Bill Relief Scheme ends on 31 March 2023. The sooner we get clarity on where future support will be targeted the better.

“It is good news to hear plans to improve energy efficiency across the economy, but we need to see greater urgency as firms battle with their bills in the here and now.

“It is also good news that Sizewell C will proceed, and we are relieved that HS2 and Northern Powerhouse Rail have not been cut further. These projects will provide a major boost to regional economies as well as improving our national infrastructure.

“The Government must do more to improve conditions for businesses to invest and grow, otherwise we will be starting from a weak base to power our recovery once global economic conditions stabilise.

“The Chancellor’s Statement is light on green innovation, doesn’t address current labour shortages and has nothing on boosting export led-growth.”

This was posted in Bdaily's Members' News section by Matt Joyce .