Essex Chambers, as part of Chambers East, have issued a reaction to the Chancellor’s Budget Statement. Reaction to the Budget among businesses across the East of England will range from concern to alarm as they are required to shoulder the burden of tax-raising. This will in part be offset by some encouraging announcements on investment which will be of indirect benefit to them.
The increase in employer National Insurance contributions, a 6.7% increase in the National Living Wage and the impact of the Employment Rights Bill previously announced will in combination add significant costs to business and risk undermining the growth we all wish to encourage. It’s imperative that in implementing these measures there are proper protections – and we welcome those which have been set out, such as sector-specific business rates relief – for those smaller businesses which are most vulnerable. The positive decisions on full expensing, the annual investment allowance and R&D relief will also be helpful.
We can expect the East of England to benefit from a share of the additional investment announced in education and health, further education, rural broadband, roads maintenance and local transport schemes. We are pleased with the additional funding announced for the Cambridge Growth Company and the commitment to improve East-West rail, albeit just outside our region, will help to connect us to the rest of the country.
However, overall, there was precious little in the Budget speech about the East of England and in particular the absence of confirmed funding for the rail junction improvements at Ely and Haughley which are critical to boosting connectivity, trade and growth is a major disappointment. Together with a range of partners who are all fully supportive we will continue to make the case for this much-needed investment.
This is a high-risk Budget which we hope will pay off in time even if there is short-term pain. If we get good, supportive trade and industrial strategies alongside effective devolution and public investment in infrastructure then business confidence may be boosted in time.
“There are welcome investments in health, education and infrastructure announced in the Budget although we await detail on many of them. But the costs will largely be borne by business so this is a tough Budget for employers.
“We expect many Essex SMEs will struggle with the extra burden of taxation. For our wider East of England region, the failure to announce funding to upgrade the rail junctions at Ely and Haughley, which are critical for the movement of freight to and from Felixstowe, is a major missed opportunity.”
Chambers East is a partnership between the four Chambers of Commerce serving businesses in Cambridgeshire, Norfolk, Suffolk and Essex, each operating independently but united in their desire to see the East of England region thrive.
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