Budget: Support measures welcomed but key sectors still need help - Chamber

Business leaders in Greater Birmingham welcomed extensions to key Covid support schemes - but warned the Chancellor 's Budget lacked help for key sectors such as aviation.

Several calls from Greater Birmingham Chambers of Commerce 's 'Back Our Businesses ' report were answered in Rishi Sunak 's Budget, including extensions to furlough and self-employed schemes until September and a continued business rates holiday.

But the Chamber said Mr Sunak could have gone further to help the hardest-hit firms - particularly those involved in supply chains, the aviation industry and directors of limited companies.

Paul Faulkner (pictured), chief executive of the GBCC, said: “It 's pleasing to see the Treasury has heeded the calls we made in our Back Our Businesses plan - in particular around the extension of the furlough scheme through to the Autumn, additional support for the self-employed, further financial assistance to help businesses reopen and of course, easing the severe financial pressures are facing by extending VAT cuts and business rate relief.

“That 's not to say that the Chancellor couldn 't have gone further especially in relation to helping directors of limited companies or those firmly embedded in the supply chains of businesses that have been forced to close by the crisis.

“Coupled to this, offering greater incentives to businesses that invest in technology in the form of tax incentives should also be cautiously welcomed - especially if they provide a much needed shot in the arm to productivity levels.

“The importance of infrastructure investment was also at front and centre of today 's announcements and whilst there was much fanfare around free ports, green investment bonds and a new National Infrastructure Bank, details around support for Birmingham Airport and the wider aviation industry was sadly lacking.

“Closer to home, it was brilliant to see that Solihull has secured significant investment to press ahead with infrastructure including multi-story car parking for the HS2 Interchange station - a project which will open up vast development opportunities both home and abroad.

“On a more sombre note, the Chancellor also spelt out the severity of the debt crisis facing the economy moving forward and used the Budget to announce long term corporation tax rises in a bid to restore parity to the public finances - although firms with smaller profit margins were rightly spared any sharp increase which are likely to dent business confidence and choke off any short term recovery.

“Overall, much of the Chancellor 's plans are predicated on a sharp rise in consumer spending once lockdown measures ease and we would urge the Government to learn the lessons from the past and make sure both the economic and epistemological strategies are aligned in order to allow businesses to emerge from this crisis with a semblance of confidence intact.

“Let 's not forget that so many businesses in the region are having to live through this crisis but also deal with the fallout from Brexit - something which the Chancellor chose to ignore this afternoon and we would urge those in Number 11 to constantly review the support measures in place before tightening the fiscal belt. ”

Key headlines from the Budget:

• Extension of the furlough scheme until September - furloughed employees will continue to receive 80 per cent of their salary for hours not worked. Employers will then be asked to make a 10 per cent contribution from July and 20 per cent in August and September
• 100 per cent business rates holiday to remain in place until the end of June before being discounted by two thirds for the rest of the year
• Corporation tax will rise to 25 per cent from 2023. However, there will be protection for those businesses with profits of less than £50,000.
• £5bn grant scheme to help English high-street shops and hospitality businesses
• Cash grants under the self-employment income support scheme (SEISS) to those who became self-employed during 2019-20
• An additional £400m for the arts sector - with £300m added to the existing Culture Recovery Fund, £90m for England 's museums and cultural bodies and £77m for similar initiatives in the devolved nations
• £1.65bn towards the UK 's Covid vaccination rollout to help the country to achieve its aim of offering first dose to every adult by the end of July
• A 'fast-track ' visa scheme to help start-up and rapidly growing tech firms source talent from overseas
• An extra £126m into the traineeship scheme, in which the government pay employers who give young people work placements
• The 'Help to Grow ' Scheme in which thousands of small businesses will be offered free MBA-style management training
• A £150m pot to help communities take over a local pub or sports club at threat of closure
• Businesses investing in new equipment can offset all of the cost (with an additional 30 per cent off) in a bid to encourage more firms to invest in technology

Click here to read our blog containing a complete guide to the Budget 2021.

Click here to access the Chamber 's Covid-19 business support grid.

Click here to book on to our Spring Budget 2021 Review event with Azets.