GWE Business West response to Budget – June 2010
There was much for business to welcome in
the Chancellor’s first budget. But it has also raised a number of
questions and created some fears.
It was good to hear an emphasis put on the need for the recovery
to be led by the private sector and referral to supporting private
enterprise and providing incentives for people to go out to
work. And the announcement that Corporation tax will fall
gradually to 24% and the Small Companies tax rate will be cut to
20% and not increased to 22% as had been planned by the previous
Government.
Among the questions will be just how some Government Departments
will deliver savings of up to 25%, what impact the rise in VAT will
have on business and the economy in general, and just what cuts
will local authorities face? Some answers will come with the
announcement of the Public Spending Review in October.
Nigel Hutchings, Director, Chambers of Commerce, GWE Business
West, said, “The Budget confirmed that Regional Development
Agencies in England will be replaced by Local Enterprise
Partnerships. A White Paper is expected this Summer. GWE Business
West is taking a lead role in bringing the business community
together to be at the forefront of this debate across
Gloucestershire, West of England and Swindon/Wiltshire. We agree
with British Chambers of Commerce on this issue – Chambers of
Commerce and business need to be ready to take on a leadership role
in any new arrangements. “
John Savage, Managing Director, GWE Business West said, “Our
fears lie in what the Chancellor had to say about generating new
jobs across the country as a whole. The creation of an Economic
Growth Fund to support capital projects sounds like good news, but
when he came to confirming the go ahead for a number of large
infrastructure projects, they were all either in the Midlands or
the North.
“Whilst welcoming the intention to support continued investment
in capital projects, we are concerned at the lack of reference to
the South West region and the many schemes now hanging in the
balance in our area. Many of our Chamber of Commerce and other
business members have constantly campaigned for the need to redress
the infrastructure deficit in the South West and the Bristol city
region in particular, with many schemes actively supported by the
business community.
“There is a real risk that Government may have a perception that
our area is not as needy as elsewhere. However, we know that
improvements to our transport system, for example, are absolutely
vital if we are to continue to grow. Therefore GWE Business West
will continue to make the case on behalf of business for the need
for greater investment in this area in order that the private
sector can do what the Chancellor says he aspires to – deliver
prosperity for all.”
Download the full briefing document here.
Note to editors
GWE Business West
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Playing a major role in shaping and supporting economic growth and
success.
GWE Business West exists to help provide an environment in which
business can thrive and prosper. It is a private company with a
public, business responsible purpose. It delivers an extensive
range of business to business services. Acting on behalf of its
members and customers, GWE Business West is a powerful voice for
the business community across the Bristol, Bath and North East
Somerset, Gloucestershire, Swindon and Wiltshire region, with
strong roots in each of its local communities.
GWE Business West operates from offices in Swindon, Bristol,
Bath, Midsomer Norton and Cheltenham.
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