Business leaders: Little in Hunt’s Budget to help local businesses
BUSINESS leaders in the West Midlands were unimpressed by last week’s Budget that offered them little.
Raj Kandola, director of external affairs at Greater Birmingham Chambers of Commerce, called it “no surprise” that the Chancellor used his limited fiscal headroom to push for what he called “headline grabbing tax cuts”.
“It’s just a shame that more weren’t prioritised for business given the widespread challenges many are still facing,” Mr Kandola said.
“In short, it was pleasing to see more funding for childcare to tackle labour market shortages and further reform of the pension market to unlock investment.
“Additional funding for the West Midlands Combined Authority to support cultural initiatives is also helpful given the current challenges the sector is currently facing in Birmingham.
“However, there was very little announced that will help to alleviate the huge cost pressures that firms continue to face on a daily basis.”
Meanwhile, Stuart Smith, head of the Midlands region at property consultancy JLL, called the policies announced as ones largely targeting people over businesses, something which was “of little surprise” in the run up to a general election.
“However, inflation is nearly under control which means rate cuts should soon follow and the real estate industry is ready to act,” he said.
“To this end, news of a further cash injection into the Levelling Up Fund as well as detail on plans for the West Midlands Investment Zone will be broadly welcomed.
“Investors will be going through the details of the announcements for more reasons to direct capital to our cities.
“What’s needed is a concerted effort to build more quality, sustainable homes across the Midlands and reassurance that they’re in a position to benefit from the reallocation of funds from HS2.
“Clarity on this will be vital to give councils what they need to develop local transport projects with next year’s budgets in mind.
“No matter which party is in power after the next election, it will need to back businesses and make a compelling case to invest in the Midlands’ cities if we’re to realise its economic potential.”
David Morris is the Midlands regional market leader at financial services firm PwC, based on the city’s £1.2 billion Paradise estate.
He welcomed the boost to the West Midlands’ arts and cultural sector.
“The announcement to provide
£15 million to the West Midlands Combined Authority to support culture, heritage and investment projects is welcome,” he said.
“The region has benefited over the last two years from the financial incentives of the investment zones and freeports, resulting in the West Midlands ranking as the top region out of London for foreign direct investment in 2023. “Continued investment is needed to maintain the momentum in the region and achieve economic growth. “Additionally, further devolution deals including in Warwickshire, will give powers to local authorities to make decisions that are best for regions.
“The Chancellor stated that two thirds of salaried jobs have now been created outside of London and the South East, highlighting the growth and economic potential in the regions.”
Continued investment is needed to maintain the momentum in the region and achieve economic growth. David Morris