Chamber welcomes key calls made by Chancellor

Birmingham business leaders have hailed key measures in Jeremy Hunt’s autumn statement as a major boost to UK investment following pleas from the British Chambers of Commerce.

Greater Birmingham Chambers of Commerce (GBCC) Director of External Affairs Raj Kandola said the Chancellor’s statement would help to unlock investment and tackle cost pressures for struggling businesses.

The key points in the statement included:

• National insurance will be reduced to 10 per cent from 12 per cent
• Class 2 National Insurance paid by self-employed to be abolished and Class 4 National Insurance to be reduced by one percentage point to eight per cent.
• Universal Credit and disability benefits to increase by 6.7 per cent, in line with September's inflation rate
• State pension  to be increased by 8.6 per cent from April 2024 to £221.20 a week
• An additional £4.5bn of support to the manufacturing sector between 2025 and 2030
• Additional £500m funding for UK artificial intelligence
• Three further investment zones, in the West Midlands, East Midlands and Greater Manchester
• Hand-rolling tobacco duty to increase by 10 per cent, while alcohol taxes are frozen until August 1 2024.
• The Government is making permanent a tax break for businesses which allows them to offset investment in machinery, IT and equipment against corporation tax. It is also extending business rate relief for many small firms, including pubs and other hospitality businesses.

The West Midlands’ Investment Zone, which received the go-ahead from the Autumn statement, has the potential to directly attract more than £2 billion of new investment into the regional economy and a further £3.5 billion overall, creating more than 30,000 jobs by 2034.

The West Midlands Combined Authority (WMCA) will now be able to bid into a £150 million Investment Opportunity Fund to attract private investment.

£98 million has been allocated for projects across the West Midlands from the third round of the Levelling Up Fund while £3.8 million has been assigned for the West Midlands 5G Innovation Region.

Raj Kandola (pictured), GBCC director of external affairs said: “With higher levels of inflation creating more than expected fiscal headroom, the Chancellor was able to deliver an Autumn Statement which took sensible steps to unlock investment and tackle cost pressures for struggling businesses.

“Data gathered via our Quarterly Business Report has consistently underlined the historical low levels of capex investment, so it was pleasing to see the Chancellor has listened to our calls and made full expensing a permanent policy – reforming the pension fund system, and R&D tax reliefs should also offer a much-needed boost for investment opportunities.

“Simplifying the planning process in order to speed up infrastructure investment is a step in the right direction and will hopefully provide more market confidence following the baffling decision to curtail the progress of HS2 beyond Birmingham.

“The confirmation of the Levelling Up Zone in the West Midlands will offer a massive boost to the region, particularly in terms of jobs created and the opportunity to leverage private sector investment.

“With many firms still suffering from eye watering costs, it was also good to see the Chancellor freeze the business rates multiplier and extend relief for hospitality and retail businesses.

“However, a more radical proposal would have been to extend the multiplier approach to larger businesses given that many smaller firms operate in larger rated premises.

“With the OBR’s projections laying bare the fragility of the economic recovery, it’s clear the Mr Hunt cannot rest on his laurels.

“In particular, the Government will need to build on this base in order to continue to bring down inflation, tackle labour market gaps and fire investment – today marks a solid start.”

Emily Stubbs, GBCC senior policy and projects manager said: "Although much coverage was devoted to cuts in National Insurance for employees, it’s a shame that an equivalent scheme wasn’t introduced for employers given the price pressures many continue to face.

“As businesses continue to grapple with recruitment challenges, it was pleasing to see additional funding being made available for boosting Apprenticeship opportunities.

“Nevertheless, we would have like the Government to go further and offer businesses flexibility in how they spend levy funding and it remains to be seen how the mandatory work scheme will operate in practice."

Read a detailed blog from the Chamber's policy team on what the Autumn Statement means for business.