Budget reaction: the Good, the Bad and the Ugly for Norfolk business 

Norfolk Chambers of Commerce has responded to the Chancellor’s latest Budget. Here’s what Nova Fairbank, our Chief Executive, makes of the announcements, and what they mean for businesses across the county.  

Nova Fairbank, Chief Executive, Norfolk Chambers of Commerce:  

“Constrained by a challenging fiscal and international environment, this Budget was a muted one: sending the right signals to business but lacking in the big calls needed to truly shift the economic dial. And with fiscal devolution at the heart of the Chancellor’s plan for growth, Norfolk must not be left languishing in devolution limbo.” 

The Good  

Despite an overall subdued tone, there were some welcome measures in the Budget – particularly for Norfolk’s tourism, defence and R&D sectors: 

“Norfolk’s £3.6bn visitor economy will benefit from a national increase to the Small Business Rate Relief threshold. Resulting in significant cuts and/or complete removal of business rates for 70,000 more businesses, this provides much-needed relief for the region’s high streets.” 

“A £5bn funding commitment to the defence sector also poses a unique opportunity for the East of England, the UK’s third-largest space sector region with the largest network of innovation centres.” 

“£424m in UKRI funding to the Norwich Research Park is welcome recognition of the region’s potential as a world-leader in science and innovation. 4000 sqm of cutting-edge research and innovation infrastructure will entrench both the John Innes Centre and Sainsbury Laboratory as a world-leading hub for plant and microbial science.” 

The Bad  

Energy costs and rates relief were two areas where businesses were hoping for more.  

“However, limited new help on businesses’ energy bills are less welcome. 63% of Norfolk businesses continue to struggle with the cost of energy, a cost that will inevitably pass on to the consumer. The Chancellor cannot hope to support working people without supporting those who provide the work.” 

“Tweaks to business rates will benefit the high street, but businesses across the board are struggling under the policy-driven cost stack. 41% of Norfolk businesses say business rates are more of a concern now than they were three months ago, up 4% from Q2. Wednesday’s announcements were a step in the right direction, but the Government must go further to cut costs, back business, and deliver growth.” 

The Ugly  

The biggest disappointments were a lack of action on hiring costs and an uneven devolution agenda. 

“It was also disappointing to see the government dismiss calls from across the business community to cut employer NI contributions for under 25s. Our data shows 90% of businesses in Norfolk felt under pressure to raise prices due to rising labour costs last quarter, with 86% reporting difficulties in hiring.” 

“The Chancellor is clearly aware of the ongoing NEET crisis, but he must give employers the breathing space to tackle it. By not doing so, 38,000 more young people could remain out of work. A 3.9% increase to the minimum wage does little to help those without a job.” 

“A lack of clarity regarding fiscal devolution invites further uncertainty in our region. Until a devolution arrangement is reached for Norfolk and Suffolk, the counties will stay in the Government’s blind spot: more local powers over tax, grants and government funding will not apply in the region until at least 2028, putting a stark limiter on growth in every postcode.”  

What’s next?  

Norfolk Chambers will continue to represent the views of our members on these issues. Nova concludes:  

“We would have liked to see a wider range of businesses benefitting from energy support and business rates reform, and more action to tackle the youth unemployment crisis. These are areas both the Norfolk Chambers of Commerce, together with the British Chambers of Chambers of Commerce, will be seeking more action on in the months and years ahead.”  

If your business has been affected by any of the issues above, we’d like to hear from you. Please do get in touch with the Norfolk Chambers team via [email protected].