Positive backing for Freeports is welcomed in the Westcountry

BUSINESSES in the South West have reacted to Chancellor Jeremy Hunt’s Autumn Statement by warning that more needs to be done to increase confidence.

Devon and Plymouth Chamber of Commerce welcomed support on business rates and investment in innovation – but warned this could be undermined by reducing access to research and development tax credits.

There was little specific mention of Devon, Plymouth and the wider South West, although the previous plan to include Plymouth as an Investment Zone alongside the R&D focused Plymouth and South Devon Freeport appeared to match the Chancellor’s vision for Britain to be a world leader in innovation, leaders said.

Stuart Elford, chief executive of Devon and Plymouth Chamber, said: “This is a difficult budget for difficult times and we appreciate that the Chancellor had to recoup some of the difficult losses that have been made since the mini-budget. It seems like the public sector bears a lot of the brunt of that. He said there was some cause for optimism around research and development, and the pledge the investment zones will continue.

“That is potentially good news for Plymouth, because although it wasn’t

specifically mentioned, investment zones previously have been indicated that they are most likely to go next to Freeports, and we of course have a Freeport,” Mr Elford added.

“Our Freeport is predicated on research, development and innovation more than international trade, like other Freeports.”

The business rates re-evaluation is to continue in April 2023, linked to a £13.6 billion package of support for transitioning for businesses. “The devil will be in the detail,” Mr Elford predicted. “Until we know exactly who that goes to and what it’s to cover, we won’t really know. But we do appreciate that had to happen... it is right that people pay fair rates,” he added.

On energy, he said he was pleased to see the Chancellor looking at longterm strategy for energy independence, but he added: “The worry for businesses is the cost of energy at the moment, and Mr Hunt is saying that business support for energy will continue beyond April next year, so that is good, although he says it tapers.

“Business energy costs are already too high – 4% of businesses say they will be unable to pay their energy bills in April 2023, so that is terrifying. For Devon alone, that equates to 2,500 businesses.”