New Chancellor must act quickly to help business - Chamber
Business leaders in Greater Birmingham hope new Chancellor Jeremy Hunt 's statement today will provide much-needed stability for businesses.
Mr Hunt, who was appointed on Friday following the sacking of Kwasi Kwarteng, is expected to set out a medium-term fiscal plan this morning in an attempt to calm the financial markets.
It is not yet clear what measures are going to be announced, although there is speculation the 1p cut in the basic rate of income tax could be set back to its original 2024 date, while the fall in National Insurance is likely to stay in place .
A reversal of the planned cut in Corporation Tax has already been announced by Prime Minister Liz Truss.
Henrietta Brealey (pictured), chief executive at Greater Birmingham Chambers of Commerce, said: “Businesses need stability, clarity on the plans of the government and the confidence that they will be delivered effectively with the interests of the country at heart.
"This latest u-turn on corporation tax will help to plug the black hole in our public finances, but will do little to help those businesses that are struggling to turn a profit as soaring inflation, rising interest rates, labour market challenges and supply chain disruption continues to bite.
“Many local businesses have remained admirably resilient through the events of recent years with 40 per cent predicting that their profitability will improve over the next 12 months in our Q3 Quarterly Business Report. However, key sectors continue to be hard hit, first by Covid and now by inflation, astronomical energy bills and dented consumer confidence.
“Now they need certainty that the reversal of the increase to National Insurance - as we called for in our policy manifesto- will remain in place and a clear plan for how the Government intends to navigate the country and economy through the very real challenges we face. ”
The Chamber will provide full reaction to the Chancellor 's statement later today.