Business leaders welcome lifeline after tough year
BUSINESS leaders from across Birmingham and the West Midlands have broadly welcomed the measures outlined in the Chancellor’s 2021 Budget.
There were several business boosts for the region with areas such as Rowley Regis, Smethwick and West Bromwich among those to receive cash from the Towns Fund to support regeneration while East Midlands Airport is one of eight new freeports.
A £50 million grant has also been handed to borough leaders in Solihull to support development of a multi-storey car park next to the HS2 Interchange station near the airport.
Key figures from the region’s business community tell us how they saw the Chancellor’s statement...
■ Greater Birmingham Chambers of Commerce said several calls from its ‘Back Our Businesses’ campaign were answered, including extensions to furlough and self-employed schemes until September.
But chief executive Paul Faulkner said Mr Sunak could have gone further to help the hardest-hit firms, particularly those involved in supply chains, the aviation industry and directors of limited companies.
“Coupled to this, offering greater incentives to businesses that invest in technology in the form of tax incentives should also be cautiously welcomed – especially if they provide a much needed shot in the arm to productivity levels,” he said.
“The importance of infrastructure investment was also at front and centre of the announcements and, while there was much fanfare around freeports, green investment bonds and a new National Infrastructure Bank, details around support for Birmingham Airport and the wider aviation industry was sadly lacking.
“Closer to home, it was brilliant to see that Solihull has secured significant investment to press ahead with infrastructure including multi-storey car parking for the HS2 Interchange station.”
■ Tim Pile, chairman of regional business body Greater Birmingham and Solihull Local Enterprise Partnership, welcomed the Budget.
“Intelligence gathered from our partners shows many small firms have relied on furlough payments and VAT cuts in order to survive the pandemic,” he said. “The extension to the furlough scheme, continuation in cuts to VAT and a freeze on business rates throws a lifeline to those affected.
“It will help many businesses with whom we have been working to enable their recovery and especially those in the hospitality and creative sectors who have been severely impacted.
“At the same time, we know many SMEs are burdened with debt.
“The LEP welcomes the launch of the Government’s ‘Help to Grow’ scheme as we understand the importance of enterprise and entrepreneurship skills for both start-ups and established businesses.
“We will look at all the opportunities presented through the Budget and examine how we can deliver them through existing and new structures for the benefit of our people and our economy.”
■ Although the West Midlands missed out on having a new freeport, the decision to house one at East Midlands Airport will no doubt have a positive domino effect across the whole of the region.
Sir John Peace, chairman of the Midlands Engine, praised the fact the Chancellor’s statement recognised the huge potential for economic growth represented by the new freeports.
“They will be transformational catalysts for widespread changes and a key component of levelling up the Midlands,” he said.
“They will play a crucial role in driving up economic potential, rapidly accelerating existing initiatives, tackling skills and productivity gaps, increasing investment and delivering long term growth in our region.
“Most significantly, the freeports at East Midlands Airport will further enhance the central role of the Midlands Engine as a global gateway for the UK – building on our position as a proven powerhouse of international trade.”
He added: “I am delighted too with the Towns Fund announcements. Success here reflects the considerable work led by partners and recognises the importance of our regions’ towns, their hinterlands and the critical role they play in levelling up every part of the Midlands Engine.”
■ Mike Cherry is director of Staffordshire timber merchant WH Mason & Son and national chairman of trade body the Federation of Small Businesses.
He said the Budget would help many small firms with their final push through to September but there was little in there to aid job creation or help people return to work.
“Ensuring the newly selfemployed can now access support marks a big step forward but directors, who appear to have been left out yet again, will be incredibly disappointed,” he said.
“Thousands of small businesses are on the brink of collapse and thousands more are suffering from low confidence as cash reserves dwindle. They will welcome both the extension of flagship support schemes that have kept them going over the hardest year they have ever faced as well as confirmation of new support measures around taxation, employment and cash grants.
“While the furlough extension is much-needed, small employers are still struggling due to high national insurance contributions and the removal of the job retention bonus.
“The Government should look again at these areas.”
■ Business leaders in Coventry and Warwickshire said the Chancellor had heard the calls from employers in the region about the fact continued help was needed as the nation recovered from the pandemic.
Louise Bennett, chief executive of Coventry and Warwickshire Chamber of Commerce, called it “a very upbeat speech” considering the health and economic crisis the UK had faced over the past year.
“As ever, some of the announcements had already emerged but we certainly welcome the extension to furlough, the new restart grants and many of those policies designed to help support cashflow for those still struggling,” she said.
“Investment from both the Government and businesses is going to play a huge role in getting our economy moving again once we start to open up so it was very welcome to hear the new ‘super-deduction’ on business investment and also plans for a levelling up fund.
“The rise in corporation tax will be highlighted and no business wants to pay more in taxation but, when you take it in the round with the support for firms struggling due to the crisis and the incentives to invest, it was almost inevitable.
“There will be a long-term issue around tackling Government debt but getting businesses and the economy growing again is absolutely vital.”
The extension to business rates relief for the retail, hospitality and leisure sectors is positive news although many sectors have been left unsupported Jon Leedham, Cushman & Wakefield
Jon Leedham, Birmingham managing partner for commercial property consultancy Cushman & Wakefield,
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said: “The Chancellor’s pledge for an ‘investment-led’ recovery will be welcome news to the business community.
“The announcement that one of the eight new freeports will be at East Midlands Airport will be a significant boost to inward investment, business growth and job creation.
“The Midlands region has a rich heritage of innovation and, with a freeport, we can use these strengths to secure major employment and investment opportunities.
“Following hot on the heels of last week’s announcement that the Ministry of Housing, Communities and Local Government will be creating a dual headquarters in the city, it’s pleasing to see Wolverhampton being named as one of the beneficiaries of the 45 new town deals.
“The extension to business rates relief for the retail, hospitality and leisure sectors is positive news although many sectors have been left unsupported and paying full rates throughout the pandemic.”