Encouraging signs from Budget but call for focus on region’s power
THE South West will benefit from investment in transport, businesses and technology as the Budget was revealed on Monday.
The Chancellor of the Exchequer, Philip Hammond, said the hard work of the South West was paying off.
“Thanks to our careful stewardship of the economy the public finances are in a much stronger position and national debt is falling,” he said.
“This means we have more money to invest in Britain’s future – boosting local services, supporting our high street, backing business and fuelling the economy.”
This week’s announcements for the South West included:
£23 million for the West of England Combined Authority through the Transforming Cities fund to improve inter-city transport links – benefitting passengers, commuters and motorists across the region
A £90 million ‘Future Mobility Zones’ fund available for areas to trial revolutionary new transport, including selfdriving shuttles, digital payments and e-bikes.
£13 million across the country to improve access to flood information, including an expansion to the flood warning system to an additional c.18,000 at-risk properties in the South West
A £10 million Fisheries Technology Fund to transform the UK fishing industry and ensure the UK is a world leader in safe, sustainable and productive fishing
£2 million for fishing safety projects across England
Since 2010, the South West has one of the lowest unemployment rates of all UK regions, with 279,000 more people in employment and 117,600 more businesses.
The region is experiencing some of the highest productivity growth of all UK regions.
Sam Holliday, the Development Manager of the Federation of Small Businesses for Gloucestershire, Bristol and Bath said the SME community had plenty of good news in the Budget.
‘’As with every Budget, the devil is always in the detail but I think it’s fair to say there are a number of very encouraging items which will help the local small business community here in Gloucestershire and the West of England,” he said.
‘’We are delighted that the Chancellor has listened to the FSB and others and put a real focus on supporting our high street independent sector and we very much welcome the decision to cut business rates by a third for the vast majority of our SME retailers.
“This will mean genuine discounts for the next two years for many of our high street stores which can only help in their determined battle to ensure we have the vibrant town centres our communities need.
‘Elsewhere we also welcome the decision not to increase small business cost such as the freezing of the current VAT threshold for two years and the protection of the Employment Allowance.
“Both of these potential cost-saving measures will mean that small firms will have more support to help with the ever-rising costs of doing business.
‘’With some other encouraging news as well such as increased support for small builders, the freezing of the fuel duty which affects so many of our SMES and the commitment to more investment in infrastructure, apprenticeship support and technology this would seem, overall, to be a Budget which can be seen as genuinely pro-small business.
“We now look forward to seeing in more detail the full extent of these measures.’’
Chris Wills, corporate & commercial partner at Willans, said the Budget did give some good news for smaller companies.
“Although this was not a radical Budget, some of the Chancellor’s announcements suggest that there may be some welcome news for small businesses,” he said.
“A reduction in business rates for retailers in England and a mandatory business rates relief for public conveniences, the freezing of fuel, beer, cider and wine duty, an increase in the annual investment allowance and an acceleration of the raising of the personal tax threshold should help independent shops, pubs and cafes on the high street.
“These benefits must, however, be weighed against any increased costs associated with changes to the living wage and the tax on certain plastic packaging.
“The level of entrepreneurs’ relief has not changed, but business owners who are looking at their exit strategies or succession planning options will now need to plan a little further ahead; the qualifying ownership period will increase from just one year to two years.”
Business West Gloucestershire director Ian Mean said that while more was being done to help high street businesses, more attention should be paid to the region.
“In Gloucestershire, and particular in Gloucester there are some real initiatives being driven to alleviate the high street shops crisis.
“So, the government’s big announcement of £675million to reinvigorate the High Street is very welcome.
“In Gloucester, for instance, I could see real benefit of those empty premises over the shops being let so that life was coming back into the city.
“And for small business, the reduction in the apprenticeship levy from 10 per cent to five per cent will be good news for those small firms needing to take on an apprentice.
“We heard quite a lot about the Northern Powerhouse again and the Midland engine from the Chancellor but what about the South West?
Don’t we actually exist? - we rarely get a mention and business is getting pretty fed up with being ignored in this region.”