Chancellor backs key Chamber calls

The Chancellor 's Autumn Statement answered several key calls made by Greater Birmingham Chambers of Commerce.

However, firms will be disappointed by the lack of action on recruitment challenges and VAT reforms, business leaders said.

Jeremy Hunt 's statement addressed a number of the GBCC 's lobbying calls - including a long-term commitment to HS2, maintaining levels of R&D spend, freezing the business rates multiplier in 2023-24 and continued support for firms who are struggling to pay their energy bills beyond April.

Mr Hunt also set out a package of targeted support worth £13.6 billion over the next five years to help with business rates costs, while relief for retail, hospitality and leisure sectors will also be extended and increased.

Alongside direct support to households and businesses, the Government has pledged to reduce energy consumption by 15 per cent by 2030, delivered through public and private investment.

Other highlights included an increase in public funding towards R&D to £20 billion by 2024-25 and a pledge to support sectors with high potential for growth - such as digital, green technology and life sciences - by reducing unnecessary regulation.

Henrietta Brealey (pictured), chief executive of Greater Birmingham Chambers of Commerce, said: “By and large, the Chancellor delivered a plan designed to reassure both the markets and businesses across the country.

“With businesses suffering from eye-watering overheads, many will be relieved to see additional support for paying their business rates and help with their energy bills beyond April - the next few months will be crucial to ensuring the parameters of the scheme are designed to help the most vulnerable firms.

“A commitment to delivering HS2 in full coupled with reassurances around additional infrastructure and R&D spend was also welcomed - if the UK is to maintain its place as a global destination of choice, improving connectivity and raising productivity levels remains essential.

“Reassurance over long-term net zero commitments were also good to see - now it 's crucial the Government commits to delivering the Trailblazer Devolution Deal for our region in order support low carbon storage on a regional level which will reduce energy costs for local businesses in the long term.

“Increased spending for schools is much needed, however, we would urge the Government to match this ambition when it comes to vocational training.

“Importers will welcome the removal of tariffs on certain products. However, more needs to be done to support businesses that are struggling to expand their overseas reach - smoothing trade relations with our European counterparts and tackling the issues around the Northern Ireland protocol remain at the top of the priority list. ”

But the GBCC said businesses will be disappointed by the lack of detail on VAT reforms or plans to address labour market challenges.

Raj Kandola, head of policy at the GBCC, said: “Many businesses will be concerned at the lack of a bigger plan around tackling recruitment challenges - expanding the parameters of the shortage occupation list and encouraging more firm led investment in human capital would be sensible starting points.

“Whilst we appreciate Mr Hunt 's hands are largely tied by sharper borrowing forecasts, cuts to the dividend allowance will do little to foster an entrepreneurial platform that encourages growth and many businesses will be left disappointed that no action was taken on VAT reform given the crippling cost pressures that firms face on a daily basis.

“The Office of Budget Responsibility painted a fairly sobering picture on the longer-term economic projections and within this context, it 's essential Mr Hunt uses this Statement as a springboard to boost business confidence and create a blueprint that will drive growth across all parts of the country. ”

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