Investment key for region’s business growth

Giving his initial reaction to today’s Spring Budget, Phil Smith, Managing Director of Business West, said: 

“The Chancellor has acted to address the ongoing tightness in the labour market, and the announcement of an expansion of the available free childcare for parents of one and two-year-olds in England was welcome, as was the set of other incentives for people with long-term sickness, disabled people, and the over 50’s. 

“Considering taxes and spending that directly affects businesses, the planned increase in corporation tax from 19% to 25% in April remains in place, but a new regime of capital allowances and other reforms will be introduced to harness investment. This is step in the right direction.

“Although the 3 months extension of the Energy Price Guarantee for households’ energy bills is welcome, disappointingly the scaling back of support for businesses previously announced this year remains in place with no mention of potential changes. 

“As part of the government levelling up agenda, the Chancellor announced the introduction of 12 investment zones, plans for the development of local infrastructure and further devolution deals for local governments and Mayoral Combined Authorities.  

“Regrettably, there was no specific mention of our region in plans for targeted boosts to local growth. However, the incentives announced for innovation, cyber, and nuclear energy could be beneficial for thriving regional industries in those sectors. 

“Overall, the return of a Budget that not only addresses immediate threats and includes measures aiming at future prosperity is a positive, but the government must commit to providing the stability and confidence needed by businesses to invest and grow the UK economy.”