Chancellor urged to back Swansea tidal lagoon scheme
BUSINESS groups and politicians have called for the Chancellor of the Exchequer Philip Hammond to back the Swansea Bay Tidal Lagoon when he presents his Budget this afternoon.
Devolving air passenger duty to Wales and stability on tax rates are among other things on the business wish list for this year’s Budget.
In its message for the Chancellor, the Federation of Small Businesses (FSB) Wales said Mr Hammond should use the Budget to instil confidence in Welsh businesses.
FSB Wales head of external affairs Ben Cottam said: “Businesses are operating at a time of great uncertainty and the Chancellor should therefore prioritise investments and actions for Wales which bolster the confidence of firms across Wales.
“Signing off on the Swansea Bay Tidal Lagoon is one way to demonstrate the UK Government’s commitment to investing in Wales outside of Cardiff and of giving the green light to a scheme that has widespread support from the business community. Tidal Lagoon Power made an early commitment to a local supply chain and it is only right that the Chancellor give this project the goahead so that businesses can begin to see the benefits of this.
“Devolving Air Passenger Duty (APD) to Wales would also give businesses a confidence boost and send the message that we will be able to work locally to ensure that Wales is seen as a country that is open for business. Devolving APD means supporting our businesses to open up new, exciting markets across the world and recognises Cardiff Airport as an asset for economic development within the region.”
Mr Cottam also called on the Chancellor to avoid adding to business costs by varying tax rates.
He said: “Business-owners will have noted speculation about moves to lower the VAT threshold. We do not believe that this is the way to inspire confidence in the Welsh business community.
“VAT is the most time-consuming tax to deal with. FSB has calculated that smaller businesses spend at least a week each year simply complying with their VAT obligations – time that business-owners should be able to spend expanding their businesses.
“Once again, small firms and the self-employed fear the Chancellor could single them out for a tax-grab at the Budget. We are calling on the Chancellor to prioritise supporting businesses in Wales in this Budget and look forward to seeing what measures the UK Government will take to promote growth in Welsh businesses.”
SMEs in Wales also want the Chancellor to use today’s Budget to announce measures to boost investment in transport and infrastructure, according to Lloyds Banking Group, which canvassed the views of SMEs across the country as part of its Business in Britain survey, asking them what they would like the Government to prioritise in the Budget announcement.
Further investment in skills and training was cited by more than twothirds of firms (65%), putting it top of their Budget wish list.
Other announcements that SMEs are hoping for include measures to:
Invest in transport and infrastructure (63%); Reduce red tape (54%); Encourage more foreign investment (40%); Improve broadband access (35%); Support overseas trade (32%). Allan Griffiths, Lloyds Bank Commercial Banking regional director for SME banking in Wales, said: “As Welsh businesses seek to boost productivity, many are calling for more to be done to improve the country’s infrastructure, including its transport and broadband networks; and to boost incentives for skills and training. Understandably, SMEs are now much more sharply focused on the importance of overseas trade and are looking for more measures to help attract foreign investment in the UK, and to support their plans to export in Europe and beyond.”
The call for stability on taxes was echoed by the Recruitment and Employment Confederation (REC), which said a survey of its members found that four out of five have little or no spare capacity to take on more work without hiring more workers.
The REC said just over half of those it questioned would have to take action if new measures are included in today’s Budget that would increase staff costs because of changes to taxation.
REC chief executive Kevin Green said: “Businesses do not want any change to taxation in today’s Budget, which would create more difficulty in attracting and retaining talent.
“The fact that over half of employers would have to react if they face increased costs is very concerning. We demand that the Chancellor does not make a difficult situation even worse for employers.