Industry experts react to the chancellor of the Exchequer's Autumn statement

In the wake of the economic instability felt across the nation over the last number of months, the Chancellor of the Exchequer, Jeremy Hunt’s Autumn statement, seeks to answer the nations question as to where we go from here. We at Bdaily were keen to find out how the nations businesses have respoinded to Hunt’s statement.

The Translation People’s business development director Alan White had this to say: “After today’s announcements, many businesses will be bracing themselves for an increase in costs. We already know that rising business costs are a concern for many UK-based businesses that trade internationally, with over a third (36 per cent) stating it’s one of their biggest barriers to overseas growth.

“Other barriers include supply chain issues (39 per cent) and labour shortages (26 per cent), which can both be further impacted by rising costs. Yet despite challenging times and financial pressures, there are signs of optimism. Eighty per cent of businesses that trade overseas plan to grow their global footprint further in the next five years.

“Many have been quick to adapt to different ways of working since the pandemic, using technology to improve efficiencies, expand their teams, reduce costs and improve their sustainability credentials. By nature, successful businesses tend to remain agile so they can adapt to external challenges.

“But what many businesses will now be looking for is reassurance that there is support for growth opportunities so they can continue to attract and retain the best talent, invest into research and development, and further establish the UK’s role as a leading business hub in the global economy.”

Hospitality expert and CEO of Peckwater Brands, Sam Martin, commented: “Prominent voices from the hospitality space have been calling out for direct relief and support ahead of this and every other financial statement, but time and again no special measures are announced to support hospitality businesses.

“Businesses that have survived the pandemic, lockdowns, staff shortages and supply issues will now have to face the fresh challenges of austerity and downturn. The measures announced today like tax relief and the energy price guarantee will go some way to safeguarding our independent pubs, cafes, restaurants, and bars though only time will tell if they will be enough.

“Hospitality is not just vital in providing jobs and revenue for the economy, it provides an invaluable part of daily life to millions around the country. Every venue saved is a reason to celebrate, but with our research showing that only 59 per cent of pub owners believe their business will still be open in 12 months, we can only hope that the measures announced today will make a difference.”

Nicki Clark OBE, UMi chief executive, said: “We know it will continue to be crucial for business to build resilience and manage costs. The trading crisis businesses are facing won’t go away overnight and we have many challenges ahead as set out in the Chancellor’s autumn statement.

“UMi has recently launched our Cost of Trading Crisis campaign which recognises the complexity of the crisis and, whilst out customers tell us energy continues to be significant challenge, attracting and retaining staff at an affordable cost is of increasing concern.

“With this in mind, we’ve brought together partners from a range of specialisms and sectors to make it easier for businesses to get the best information, expertise and practice solutions as easily as possible. To help address the immediate challenges we will provide support on managing and reducing costs, securing more orders or finding finance. No one person or organisation can single handily fix the crisis but by working together we can make a big difference.”

Commenting on the rise in national living wage, BrightHR’s CEO, Alan Smith commented: “In today’s Autumn Statement, the Chancellor confirmed the rate of the National Living Wage will increase from £9.50 per hour to £10.42 per hour in April 2023. This 9.7 per cent increase marks the largest ever increase to National Living Wage (NLW) rates. Employers should work with HR and payroll teams to implement the change and communicate it with the wider workforce.

“Increased wage bills may cause concern for employers who are facing soaring expenses in all parts of their business. This could lead to tough decisions and the need for organisational changes. Where this is this case, employers must make sure they follow fair processes and consult fully with their workforce.”

John McCabe, chief executive, North East England Chamber of Commerce added: “We know the Chancellor has had difficult decisions to make with this budget. He was right to focus on stability and protecting the most vulnerable households and businesses. This is what our members have called for and the government appears to have listened.

“The government’s renewed commitment to an extended devolution deal for the north of the region is also welcome. This could play a pivotal role in levelling up the North East. The right deal will be an important win for our region and we hope this is confirmed very soon.

“However, as the OBR forecasts confirm Britain is now in or nearing recession, it’s vital the government continues to work with us to stimulate business growth and international trade, ensure we’re meeting future skills demand and help build a more open and inclusive economy. These are the Chamber’s priorities and we will continue to make this case on behalf of our members across the North East.”

By Mark Adair – Correspondent, Bdaily