Chancellor’s Budget offered little for business

Business leaders in Coventry and Warwickshire say there was ‘very little’ for firms across the region in the Chancellor’s Budget.

Jeremy Hunt MP, the Chancellor, reduced employee National Insurance by two per cent which had been widely forecast, froze duty on fuel and enhanced support for childcare to encourage more people back to work.

There were other announcements around alcohol duty being frozen as well as investment in creative and green industries.

The Coventry and Warwickshire Chamber of Commerce held a budget roundtable with a cross section of businesses in the region at the offices of Prime Accountants Group.

There was strong interest in the Chancellor’s announcements on additional funding for culture in Coventry and for devolved powers going to Warwickshire, but Corin Crane, chief executive of the Chamber, said there was little for business.

He said: “The feeling in the room was that there could have been more for businesses. The cut in National Insurance will provide a boost to staff who are still feeling the effects of the cost of living crisis but that wasn’t matched by the same kind of help for companies.

“There was very little for our manufacturers and construction businesses, who are still feeling the pinch from the rising costs that they faced over recent years. It was a similar story for hospitality.

“One of the most positive announcements for companies across the region wasn’t a policy change but the fact that inflation is expected to fall to less than two per cent in the next few months as this will, hopefully, have a stabilising effect on businesses and give them a platform from which to grow.

“The announcements on Coventry and Warwickshire were of keen interest to everyone in the room – including £5 million for culture in Coventry which will help to support the legacy of City of Culture.

“Equally, more devolved powers for Warwickshire could help to level the playing field over the likes of adult education, which is welcome.

“As with every budget and fiscal event, it is often the case that we learn more when the detail emerges but I think it is fair to say that the initial reaction from businesses was fairly muted.

“The economy slipped into technical recession at the end of 2023 and, while that isn’t anticipated to last very long, more is going to be need to build sustainable economic growth. We all wanted to see a budget that would support that growth and I’m not sure that’s what we have been given.”