Rachel Reeves’ Autumn Budget focused on shoring up the UK economy, with measures including planned increases to the national minimum wage and expanded free apprenticeships for under-25s. While these steps may help tackle skills shortages and improve job prospects, rising labour costs and insufficient long-term infrastructure investment in the region pose challenges for business growth.
Nova Fairbank, Chief Executive, Norfolk Chambers of Commerce, said:
“The Chancellor’s Budget today held absolutely no surprises and certainly no ‘rabbits out of hats’ for the Norfolk business community. Businesses across our region were looking for the government to demonstrate their long-term thinking and clarity on their plans, in order for those businesses to be able to commit to their own strategic investment decisions, that will ultimately drive economic growth and jobs.
“What we heard today was a shoring up of the UK economy, in terms of reducing our overall long-term debt and the repeating of existing funding announcements, such as the Lower Thames Crossing, plus some tinkering around the financial edges. Small and Medium Size businesses (SMEs) will welcome the expanding of the offering of free apprenticeships for the under 25s (under 21 apprenticeships were already free) and the permanently lower business tax rates levels for those businesses in the hospitality sector. Employees across our region will also welcome the increase in National minimum wage of 85p per hour for those aged 18 – 20 and an additional 50p for those over 21 years old. However, SMEs now have to find the additional funding in their already tight budgets to afford this further wage rise.
“Again, the East of England was pretty much ignored in terms infrastructure investment i.e. no funding for the Ely/Haughley rail junctions, which would have supported both passenger and freight growth and nothing for the further dualling of the A47, including the Acle Straight. But home-owners will welcome cuts in the cost of energy and employers and their employees will welcome caps on bus fares and the freezing of rail fares which puts a hold the cost of the commuting to work.
“So all in all a relatively safe budget, that gives UK PLC better long-term financial stability, but very little in terms of clearing the path to support businesses to deliver growth.”
