Giving her reaction to the Autumn Budget, Nova Fairbank, Public Affairs Manager for Norfolk Chamber said:
“The Norfolk Chamber business community wanted the Chancellor to focus on the basics – rates, roads, and ringtones – and will be pleased that they will see some action on all three fronts.
“While more remains to be done to reduce the impact of business rates on investment and growth, the Chancellor’s decisions will lessen the impact of rate rises on hard-pressed firms in many parts of the county from next April. The Chamber network campaigned hard for a reduction in the relentless rises of this iniquitous tax, and all will be pleased that the Chancellor has listened and reduced the burden.
“Commitments to delivering road and rail infrastructure, and working to improve mobile phone signals on key transport corridors, will help support local business productivity. We are particularly pleased with the awarding of funding for the Great Yarmouth Third River Crossing.
“Despite the inclusion of a number of announcements that will support the Norfolk business community in the short term, more will still needs to be done over the coming months to lay the groundwork for a successful Brexit transition. Businesses will expect greater boldness from the Chancellor – and more radical support for infrastructure and investment – once a Brexit transition period is secured and the shape of a UK-EU deal becomes clearer.”
Commenting on housing targets, Jonathan Cage, President of Norfolk Chamber and Managing Director of Cage Consulting Engineers said:
“The building of new homes creates opportunities for many sectors in the region’s economy, and ensures that employees can find homes in their local communities. However, the increased focus on using brownfield land for housing must not push up prices or drive out employment uses, exacerbating the current imbalance in the supply of land for jobs and homes. This is a growing concern for business communities across Norfolk and the Eastern region, who struggle to find suitable sites so it’s disappointing not to see an intelligent use of greenbelt land.”
On planning, Jonathan Cage said:
“The planning system needs to work better for business, and the new review body needs to include the business voice. We stand ready to work with government on this important exercise to bring our expertise. Our research reveals that businesses are finding it harder to engage with the planning system, and are being held back by increasing costs, delays and complexity.”
Commenting on Business Rates – Paul McCarthy, Vice President of Norfolk Chamber said:
“Businesses welcome any attempt to blunt the rise in business rates, and the switch from RPI to CPI indexation is a step in the right direction. However, this still leaves firms facing a 3% increase in April. The government could have done more to boost confidence and productivity by going further, and abandoning the uprating altogether this year, given the climate of sluggish growth and uncertainty.
“As a share of national income, the UK already has the highest commercial property taxes of any major economy. The Chamber Network has been calling for the Chancellor to bring forward the switch in indexation to CPI for many years to ease some of the burden of upfront costs, which include the Apprenticeship Levy, National Living Wage, and pensions auto-enrolment, to name but a few.
“With rates bills increasing further, UK firms will be dissuaded from investing in their plant and premises because they are penalised with even higher bills for doing so. Successive governments have tinkered with the business rates system, but fundamental change is really what’s needed.”
Commenting on digital infrastructure, Chris Sargisson, Chief Executive of Norfolk Chamber said:
“The Norfolk Chamber has long urged the government to promote investment and rollout of full-fibre infrastructure and 5G technology, as businesses need faster and more reliable connections that also offer impressive upload and download speeds.
We have also called for a long time for the UK to lead the world in developing 5G technology, so we are pleased to see the continued commitment and extra funding from the government for new 5G infrastructure. This must be done in conjunction with a regulatory and planning framework which is as supportive as possible of the rollout.
“The focus on improving coverage on key rail routes is well-targeted, as we know too many business people suffer from poor coverage in these areas, and therefore can’t work while they’re on the move.”
On other key areas of the Autumn Budget, Nova Fairbank said:
On the R&D commitment:
“The aspiration to boost investment in research and development will be welcomed by businesses across Britain. The UK has long under-invested in R&D compared to our international competitors, and closing this gap will be crucial if the UK is to thrive on the global stage after we leave the European Union.
“However, businesses will eye the details carefully. Past efforts to increase private-sector R&D have often failed to connect with small companies. Government will need to work with business communities across the UK to ensure we don’t make the mistakes of the past, but instead build the innovation economy we all want to see.”
On the VAT threshold:
“Businesses across the UK will breathe a huge sigh of relief that the Chancellor has decided not to reduce the VAT threshold in the near term. At a time when firms are facing rising upfront cost pressures and uncertainty over Brexit, a lowering of the VAT threshold could well have proved to be a tipping point for many small firms and entrepreneurs.
“We hope that Ministers and civil servants will work closely with the business community, tax experts and other stakeholders to ensure that any future changes to the VAT system doesn’t stifle the business activity of some of our most promising young firms and entrepreneurs.”
On measures to boost financing growth in innovative firms:
“The lack of available long-term patient capital remains one of the key issues facing the UK, and solutions to this long-standing problem will be critical to growing the business champions of the future. We therefore welcome the additional funding for the British Business Bank to help boost patient capital investment and the extra support for investment in knowledge-intensive industries – which will provide some welcome headroom for investment in some of our most promising firms.
“While it is understandable to put in place additional safeguards on investment schemes, such as EIS, to avoid misuse, HMRC must tread carefully as such schemes play an important role in incentivising business investment that may not happen otherwise.”
On fuel duty:
“The continued freeze is positive news for businesses, particularly amongst smaller firms and the self-employed, for whom transport and distribution costs account for a significant proportion of their cost base.”
On funding to improve math skills:
“To increase productivity, the UK needs a workforce with the right set of technical knowledge and a solid base in functional skills. While encouraging more pupils to succeed in maths is a step in the right direction, greater investment in digital and foreign language skills is also badly needed to help the UK reach its international ambitions.”
On National Living Wage:
“Most businesses already pay above the National Living Wage, but for the others the latest above-inflation increase comes at a time when they face a myriad of other upfront costs and uncertainty about investment and recruitment.
“Our 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 flexible approach going forward to protect businesses and not price people out of jobs.”
On Airport Passenger Duty:
“The freeze in Airport Passenger Duty for the majority of travellers will be welcomed by business. Trading internationally is a costly process, especially for smaller exporters who need to meet clients or attend key business meetings abroad, so the government should focus on removing the obstacles to exporting.”
On the extra funding for Brexit preparations:
“The Chancellor has set aside £3bn for Brexit, this fund must be used to support businesses who will need to deal with the practicalities of leaving the EU. Over 131,000 businesses who are only trading in the EU will need to have the resources and capacity to deal with new customs systems, new trade facilitation processes and the reality of a new trading relationship with Europe. This will be crucial to the success of our economy after March 2019.
“HMRC must be given the resources and infrastructure they need to support exporters and importers as they navigate the UK’s exit from the EU, especially as their departmental resource budgets are forecast to decline.
“Business wants to see the Chancellor deliver quickly on his commitment to early progress on an implementation agreement that allows businesses to plan and invest with confidence. The end goal must be to secure the best possible terms of trade for British businesses with the EU-27 and ensure UK businesses can continue to benefit from existing FTAs following Brexit.”