Budget presents opportunity for region but fell short in key areas - Chamber

The Chancellor 's Budget answered some of the calls from Greater Birmingham businesses but still fell short in several key areas, business leaders said today.

At the heart of Jeremy Hunt 's statement was the much-anticipated devolution deal for the West Midlands Combined Authority, which secures wide-ranging new powers and funding for the region.

This includes a landmark housing deal worth up to £500 million.

The West Midlands is also now eligible to bid for an Investment Zone which aims to drive growth through measures including tax incentives and specialist business support.

Among the most eye-catching announcements was the extension of the childcare system, with the existing 30 hours of free weekly childcare to working parents now covering children below the age of three.

This will eventually cover all children from the age of nine months.

Henrietta Brealey (pictured), chief executive of Greater Birmingham Chambers of Commerce, said: “We called on the Chancellor to use his budget to tackle the escalating cost of doing business and labour market shortages, while fostering real growth and ambition.

“This budget strikes the right chord on some key areas, while leaving businesses unmoved on others.

“Helping parents back into work with meaningful reform to childcare support is a welcome development.

“The move towards to full expensing around capex investment is a step in the right direction.

“There was good news for the region as the West Midlands Combined Authority secured a significant new devolution deal and confirmation of the much-trailed opportunity for local authorities within the region to bid to secure an Investment Zone. ”

Mr Hunt pledged additional energy bills support for households, with subsidies limiting average bills to £2,500 a year extended until the end of June.

However, no equivalent support was announced for businesses.

Ms Brealey added the Chancellor could have done more to address recruitment challenges facing firms.

Meanwhile, the Budget contained no mention of business rate reforms.

Ms Brealey said: “The additional support for households struggling with rising energy costs felt inevitable and will play an important part in reducing inflationary pressures in the short term.

“However, the lack of equivalent support for the business community will jar with a number of firms, given the new support scheme which goes live in April will be a lot less generous than its predecessor - we can only hope that wholesale gas prices continue to come down otherwise any rise could lead to real hardship, particularly for those hospitality and retail firms that are still struggling with huge debts wracked up during the pandemic.

“A lack of reference to business rates reform was also disappointing to see - especially as innovative incentives could be linked to supporting businesses transitioning on their journey to net zero.

“The Chancellor could also have gone further in helping businesses overcome recruitment challenges - and introducing more modular short courses for Apprentices would have an immediate impact on boosting employment numbers. ”

Greater Birmingham Chambers of Commerce 's Policy team has produced an in-depth blog breaking down the key points from the Budget.