“This is a tough budget for business to swallow but the Chancellor has looked to ease the pain by holding out a promise of better days ahead.
“While some protection for smaller firms is welcome, the increase in employer National Insurance Contributions will place a further cost burden on business. This, coupled with a 6.7% increase in the National Living Wage, means many firms will find it more challenging to invest and recruit in the short-term.
“But the Chancellor has looked to off-set the upfront hit on firms by outlining a longer-term framework to provide stability for the economy.
“Plans to raise infrastructure spending, sector-specific business rates relief and additional support for small business will take some of the sting out of the tax rises. And it is encouraging to see full expensing and the annual investment allowance made permanent alongside R&D relief being retained.
“The Chancellor has also listened to our request to retain first year allowances for investments in the North Sea to help provide a just transition to Net Zero.
“Much now rests on the Government’s next steps, with the future benefits outlined by the Chancellor by no means guaranteed. A lot will be riding on the success of the Industrial and Trade strategies, and the effectiveness of devolution and public investment in infrastructure to reinvigorate regional supply chains.
“To build business confidence, it’s crucial that we now see decisive and inclusive action at pace from the Government to unlock the investment the economy sorely needs.”
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