Doncaster Chamber Welcomes Positive Steps in Autumn Budget, but Warns There Are Some Bitter Pills To Swallow for Businesses

Reacting to yesterday’s Autumn Budget, Doncaster Chamber has tentatively welcomed the Government’s prioritisation of stability and its commitment to laying solid foundations for future growth. That said, alarm bells will be ringing within business communities based on the anticipated rise in employer National Insurance contributions which, in conjunction with the recent hike in the minimum wage, will make it harder for firms to create jobs.

Despite the welcome focus on mid-term growth, this Government has some ground to cover when it comes convincing hard-working employers that they are on their side. Expanding upon this point, Dan Fell, Chief Exec of Doncaster Chamber, said:

“There is certainly a lot to digest with this long-awaited budget and the jury is still out on how it will impact on business confidence.

“It was encouraging to hear the Chancellor acknowledge that the way to drive economic growth is, in her own words, to: ‘invest, invest, invest’. Whether that funding is directed at transport infrastructure, school buildings, housing, or the NHS, it should create a number of commercial opportunities for the private sector. If SMEs are given a chance to deliver that work — and if Government effectively implements its commitments — this is something businesses will want to celebrate.

“The Chamber was specifically heartened by the Government’s planned investment in rail; an industry that has deep roots here in Doncaster and that is integral to our economic makeup. Indeed, even if our city won’t directly profit from any newly announced connectivity, it will benefit from the sector being in a healthy and prosperous state, as it accesses supply chain opportunities across the country.

“Meanwhile, we were also pleased to hear that Government intends to crack down on business crime by scrapping the current immunity for low-value shoplifting and by also more strongly tackling organised gangs. As mentioned in the Chancellor’s speech, the retail sector helps form the backbone of our city centres, so it’s important that these companies are adequately supported and protected from those who would maliciously target them. Sticking with the theme of retail, the lower business rate that is being introduced for properties in that sector — as well as for those in hospitality and leisure — is yet another valuable lifeline, indicating that Westminster is aware of the challenges being faced by those who are valiantly keeping our highstreets afloat.

“Finally, we would also like to commend Government for outlining its commitment to improving our planning system, via a mixture of new reforms and also by enhancing its capacity.  From our everyday conversations with members, we know that there a lot of frustrations regarding the pace at which the UK’s planning system moves; so it’s therefore good to see that this is treated as a top priority.

“Of course, the budget was not uniformly pro-business, either in substance or tone. Although we recognise that Westminster had to make some tough calls when it came to restoring economic stability, it is a shame that the nation’s wealth creators will be bearing the brunt of this, given the government’s central mission. Shouldering employers with increased National Insurance contributions at a time of economic fragility — effectively putting a higher tax on jobs — is hardly conducive to growth. In the Chamber’s most recent Quarterly Economic Survey, we were alarmed by a continued weakening of investment intentions amongst South Yorkshire firms and measures like this are not going to help matters.

“Elsewhere, the blanket hike in Air Passenger Duty (APD) represents a missed opportunity to support regional airports, like the one that’s set to reopen here in South Yorkshire. By having a differentiated approach – perhaps with a threshold based on

annual passenger numbers — the budget could have helped demonstrate that the Government understands just how important airports are when it comes to stimulating local economic growth.

“All in all, whilst there were positive steps in yesterday’s budget, there were also some missed opportunities and some bitter pills. Time will tell how these various announcements will truly affect the course of the real economy and the hard-working firms on the ground in places like Doncaster who keep it running.”