Spending review: Chamber welcomes measures to boost business confidence

Business leaders in Greater Birmingham have welcomed key investments announced as part of the Chancellor’s spending review.

But Greater Birmingham Chambers of Commerce said questions remain over whether Rachel Reeves will introduce further tax rises in the Autumn Budget to fund the new measures.

At the heart of the spending review were the previously-announced investments in regional transport infrastructure – including a £2.4bn war chest for the West Midlands.

There was also a commitment to funding the next stage of the Midlands Rail Hub, designed to significantly boost rail capacity across the region.

Meanwhile, the Chancellor announced a £2bn commitment to “home-grown AI”, stating technology has the potential to “solve diverse and daunting challenges” and create “good jobs”.

And Ms Reeves said £1.2bn a year will go to support more than a million young people into training and apprenticeships.

Raj Kandola, acting deputy CEO at Greater Birmingham Chambers of Commerce, said: “There were a number of announcements made in the spending review which are likely to be welcomed by the local business community as the Chancellor looks to bolster business confidence after a rocky few months.

“The additional investment in transport infrastructure across the city-region had been heavily trailed. However, it was also pleasing to see a commitment for the Midlands Rail Hub – the Chamber has long argued for the importance of this investment which needs to be aligned with maximising the wider benefits of HS2.

“It was pleasing to hear additional funding for skills and training investment – the key is to ensure this funding is aligned with the needs of local businesses.

“Additional funding for R&D investment, Artificial Intelligence, defence spending and housing is also welcomed. We look forward to hearing how this relates to the wider industrial strategy and 10-year infrastructure strategy.

"We also look forward to recieving more information on the new Local Growth Fund and targeted investment in deprived communities - and how these will benefit areas across Greater Birmingham - in due course.

“Nevertheless, without the scrutiny of the Office Budget Responsibility, questions will be asked around the cost implications of these measures and whether the country will be facing further tax rises as we approach the Autumn Budget.

“The Chancellor will need to use the coming months to set out a sensible plan to reduce the crippling cost pressures firms are facing.

“A roadmap for bringing down employer NICs, reviewing business rates, tackling the unintended consequences related to the Employment Rights Bill and making it easier for businesses to trade overseas will need to figure highly.”