Autumn Statement: Reaction from Chamber members

Greater Birmingham Chambers of Commerce members have been reacting to Chancellor Jeremy Hunt 's Autumn Statement which was announced yesterday.

Here is a round-up of the reaction from a selection of businesses.

John Webber (pictured), head of business rates at Colliers said

“It is with massive relief that the government has finally listened to us and other industry bodies about out-of-control business rates rises following the next Revaluation.

“By removing any downward transition, the government has finally recognised that the business rates system cannot be revenue neutral without causing significant hardship.

“Rates bills for those in the troubled retail and hospitality sectors should now reflect the economic situation and drop in rents that we have seen in the market. Freezing the multiplier is a big positive, as is capping rates rises. Businesses now will be able to sensibly plan ahead for 2023.

“The Government still needs to stick to its manifesto commitment of reducing the overall burden of business rates- but this is a step in the right direction and is hopefully a new chapter in the relationship with Government and Business going forward.

“All we can hope for now is the Valuation Office Agency (VOA) has correctly assessed the values- we will know next week !! ”

“I take my hat off to the Government. This is a major boost to the high street and to businesses in general and a fair appreciation of the economic situation. It shows that our campaign on behalf of business has been worth it. ”

Peter Atmore, head of global sales and marketing at Fracino

“There was little tangible support for business in the Statement - despite the rhetoric about trading our way out of the troubles we 're currently facing.

“Developing the UK as the next 'Silicone Valley ' is well meaning, but the UK has a major manufacturing sector that needs support and development opportunities and incentives now.

“Manufacturing is a quantifiable cash generator for the country and could really have benefitted from a lot more focus.

“There are a few imported components that will have import duties removed from them - which will aid some key manufacturers such as JLR who operate manufacturing plants across multiple countries in the UK and EU. This policy will offer little assistance to most businesses.

“The focus on challenging the 'able to work ' element of the social security burden is very welcome! We are struggling to recruit and it 's currently too easy to choose not to work and still be rewarded with income support that 's almost at employment salary levels after all the various benefits are taken in to account.

“Support for the genuinely needy is what the system is for; it 's too easy to choose not to work now. ”

Linda Wallace, director of Wesleyan Financial Services at Wesleyan Group

“Freezing the lower and middle income tax bands is a stealth tax. Most of us expect our income to go up each year but freezing tax bands, coupled with high inflation, means people will have less in their pockets in real terms.

“Higher earners are facing a higher tax bill as the threshold for the 45p tax rate is reduced. This is a move that won 't make much money for the Treasury 's coffers but means less disposable income for higher earners which will do nothing to help a move into recession.

“The cost of living is already pushing household budgets close to the edge, and today 's news will do little to help those who are struggling. We know that some are having to dip into their savings and pensions to cover living costs, but this should be done carefully and, if possible, with financial advice as it can have a significant impact on future retirement plans."

Johnathan Dudley, Midlands & South West managing partner and head of manufacturing business, at Crowe

It 's clear that the Chancellor intends to continue to use Keynesian economics commercially to drive growth by doubling down on infrastructural investment in the Sizewell Nuclear plant and the various large rail projects, including HS2.

But this only works if that investment is retained and trickled down right here in the UK economy. In the interest of British manufacturers and the economy there simply has to be robust “post Brexit - buy British ” procurement initiatives here and the same should also go for expanded investment in schools and the NHS too, or the invested money will leak abroad.

All too often this has happened in the past and the ability of manufacturers to innovate and redeploy to make what the country needed in the pandemic is testament to that. Sadly, since the pandemic there has been a reversion to traditional supply chains, much of which is imported.

Sizewell will indeed reduce reliance on third party fossil-based fuel supplies and will help our zero carbon commitments but will indeed take time to come. I haven 't seen anything in the Chancellor 's Statement that will help manufacturers cut their energy costs from next April.

This could be “mission critical ” for many businesses on the brink and hardly supports the Chancellor 's objective of stability.

The Chancellor has announced that he wants the UK to be the new “Silicone Valley ” and support innovation, yet he has announced cuts and ominous sounding changes to R&D, for which we await detail, which those very innovative businesses rely on to develop world-beating products and processes.

Of course, there is a need to stop abuse, however so many legitimate claims are being held up by ever increasing scrutiny as it is.

The Treasury and HMRC could well be combining to stifle investment in innovation in spite of the Chancellor 's stated intentions

Ann Tonks, managing director of Chapter

The Autumn Statement today carried virtually no respite for our beleaguered hospitality industry. The main take away is the Business Rates Relief on rates whose property valuations will rise in April in any case. The freezing of the multipliers for 2023/4 and the 75 per cent relief will help a little bit.

On support for energy prices, there is only a commitment to review the government support for business. The rise in National Living Wage is the right thing to do, but the increase costs associated with this were not addressed.

For 9 months our industry has asked for a VAT reduction on our food sales (food costs have risen 20 per cent during that period) and a much needed business rates holiday for 2023. Neither were forthcoming in the statement today.

To put it simply, it continues to be too expensive to run a business. We were looking for very targeted support that recognises the contribution hospitality makes to the culture and economy of our country and that would put an impetus behind sustainable business growth.

We and other small independent businesses are facing an existential crisis with costs running at eye watering increases and customer confidence at an all time low.