As we to come to terms with the news that Norfolk has declined significant funding through throwing out the Devolution deal on the table, we welcome much of what is in the Chancellor’s statement. However, at this point we have no idea how successful Norfolk will be in ensuring significant funding to be spent in our county.
Caroline Williams, Chief Executive of Norfolk Chamber said:
“Norfolk businesses will benefit from improved infrastructure, so the announced increased resources forlocal and regional transportinfrastructure, broadband, housing and innovation is welcome and will hopefully boost local business confidence. The Chancellor’s strong focus on the growth requirementsof cities and regions will mean that the business voice within a rural county like Norfolk will need to be heard loud and clear.”
Transport improvements have positive knock-on effects, as they open up supply chains, generate many new contracts for Norfolk businesses, as well as enhance access to labour and new markets. At present there is no detail as to where the Government is proposing to spend the increased resources. Norfolk Chamber are calling for the following infrastructure improvements to help Norfolk businesses deliver growth:
- Funding for further A47 Improvements including:
- King’s Lynn to Swaffam dualling
- Swaffham to Dereham dualling
- Improvements to King’s Lynn Hardwick junctions
- Funding for the Great Yarmouth Third River Crossing
- Rail improvements at Ely (signaling, junctions, line speeds and bridge strengthening)
- Improved business broadband connections
The British Chambers of Commerce have assessed other areas of Philip Hammond’s Autumn Statement and Adam Marshall, Director General of BCC commented as follows:
On business rates:
“For rural businesses and those benefitting from the lower cap on annual increases following this year’s revaluation, the measures announced are welcome. However, British businesses will continue to pay the highest local property taxes in the developed world. Addressing this upfront burden is essential if they are to invest more in training, recruitment and growth plans – all essential to closing the ‘productivity gap’. Bringing forward the planned switch to CPI for up-rating from 2020 to 2017 would have helped and an opportunity to do this was missed.”
On Insurance Premium Tax:
“Businesses across the UK will be disappointed by a further rise in the Insurance Premium Tax. This is yet another stealth tax on businesses, and increases the upfront cost of a critical safety net for firms.”
On broadband digital infrastructure:
“We’ve been calling for years for the necessary funding to improve business broadband connections.
“Fibre to the premises (FTTP) is the future – businesses need faster and more reliable broadband across Norfolk. We hope the 100% business rates relief for new full-fibre infrastructure will encourage better business connections, because the current reliance on old copper lines holds too many businesses back.
“The Norfolk is still a long way behind delivering access to a world-class digital infrastructure to businesses in all parts of the county.The government’s focus must now be on addressing the lack of superfast broadband to new and existing business parks. Rectifying this would go some way to boosting business confidence.”
On housebuilding:
“The chancellor has already committed investment to tackle the housing shortage in this country. Helping to meet the demand for housing is one of the ‘quick-start’ infrastructure projects the Chamber network has been calling for. But local business confidence will only be boosted as a result when firms start to see diggers in the ground.”
On export support:
“We welcome the announcement of additional finance and insurance support by UK Export Finance, which should provide valuable help to exporters. However, this is not sufficient to improve our ambition to get more businesses to export – and increased direct support such as enabling businesses to attend trade missions, trade fairs, commission market research or make themselves export ready would have been an important additional boost to companies.”
On the National Living Wage:
“Most businesses already pay above the National Living Wage but for the others the latest increase comes at a time when businesses are already facing a myriad of other upfront costs and uncertainty about investment and recruitment. It’s therefore right that the government has re-adjusted the trajectory of the planned National Living Wage increase in line with changes in economic circumstances.
“BCC research shows that sharp increases in the National Living Wage will cause many firms to implement cost reduction measures, such as reducing recruitment and staff hours or increasing prices. It’s important the government retains a similarly flexible approach going forward which will protect businesses and jobs.”
Listen to the latest British Chambers Podcast, discussing the Autumn Statement and what it could mean for business: www.britishchambers.org.uk/policy-maker/podcasts.html
