The Chancellor delivered her Spring Statement today and as expected it did nothing material to ease the current pressures on business, at least not in the short term.
All the advance speculation and chatter was about cuts to welfare and increased defence spending and those were the dominant themes. Along with the strategy to get back, by the end of the decade, to the £9.9bn fiscal headroom position that had been lost since the last Budget, against a background of very modest growth forecast by the Office for Budget Responsibility.
There were welcome things in and around the Statement. Including, increased defence spending and an emphasis on equipping the construction sector with the skilled workforce that will be required to deliver ambitious housing targets and infrastructure projects such as the Lower Thames Crossing.
We warmly welcome the recent announcement that the LTC has got through the planning stage as it could have a catalytic effect on business confidence and the appetite to invest in Essex. If it can be achieved a drive on government efficiency will also be beneficial.
The problem remains that whilst big changes on infrastructure, planning and so on may well pay off in the longer term in the here and now businesses are continuing to face significant challenges in the form of National Insurance increases, the raised Minimum Wage and the Employment Rights Bill.
We support the call the British Chambers of Commerce has made for a tax ‘roadmap’ which will give business a clearer idea of the way ahead on the tax burden, including when and where it might be eased. As yet there is no such roadmap.
So we look ahead to the next proper Budget in the Autumn which will be an opportunity to do more to support business and stimulate the economy if it has not picked up in the meantime. For that to happen the government must do more on a number of fronts, including prioritising making international trade easier, to help restore business confidence and kickstart the economy.
“We were not expecting anything radical or particularly helpful for business from the Spring Statement – and we didn’t get it.
“The Lower Thames Crossing announcement is very good news and will help to restore some business confidence and attract investment especially in south Essex. But we must continue to make government aware of the immediate challenges facing business and push for decisive action in the next Budget.”
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26.03.2025
