Business West responds to the Autumn Statement

Commenting on the Chancellor’s Autumn Statement, Matt Griffith, Director of Policy at Business West, said:

“This was a difficult budget for difficult times. Although there was less immediate pain than expected, the Chancellor set out rising taxes and pressure on public spending in the medium term, often by freezing many thresholds below record inflation, meaning the growth path for businesses and the UK may be long, rocky, and protracted. 

“The statement brings us back from the brink of the sharp rises in interest rates and damage to confidence we saw from the mini budget. The sombre tone of both the Chancellor and the backbenches reflected this. 

“There were also small glimmers of light in slightly better projections for growth from the OBR compared to the Bank of England. This, and a change to the government’s fiscal rules, means that the government avoids what would have been a damaging return to budget consolidation in the middle of a recession. However, many of the hard choices were postponed, not avoided. 

“Looking specifically at taxes and spending that directly affects businesses, the research and development scheme for smaller businesses has been cut which will impact many firms in investing in new innovation at a time where stability is needed. 

“Revaluation of properties for business rates will proceed next year as scheduled, with some support to prevent big jumps in bills. 

“Employers’ National Insurance levels will remain unchanged, but the national minimum and living wage rates are increasing by just under 10% from April 2023 based on record inflation.  

“Reflecting what is in effect a new government, much of the detail of our future economic and business plan has been pushed back into reviews and future statements. There were some announcements of new small forms of devolution and some saving of previously planned infrastructure spending. 

“Disappointingly, there was almost no mention of our region in plans for specifically targeted boosts to local growth. 

“However, after several years of political turbulence and changing government business and economic strategies, there is now a need for a return to seriousness and stability in how government plans and delivers its economic plan. We cannot afford optimism of a future return to growth to be forfeited by more lost opportunities to deliver the changes and confidence business needs.”