Regional leaders say Budget was designed not to 'spook' businesses

Business leaders in Coventry and Warwickshire welcomed a budget ‘without shocks’ that was designed not to spook firms just days before Halloween.

The Coventry and Warwickshire Chamber of Commerce held a roundtable event with firms from across the city and county at Stockton House near Southam where they watched Chancellor John Healey deliver his first Budget.

After watching the speech, which the Chancellor said was giving ‘breathing space now and fresh hope for the future’, businesses from a range of sectors said there were some positive announcements but that his real mission for the Budget was to steady the ship.

Delegates at the event, sponsored by Prime Accountants Group, said they were looking forward to seeing the details behind some of the announcements.

Corin Crane, chief executive of the Coventry and Warwickshire Chamber of Commerce, said: “Businesses have become quite fearful of Budgets over recent years because they have been called upon to shoulder much of the financial burden.

“As a Chamber – locally and nationally – we’ve made it really clear in the weeks leading up to the Budget that businesses just couldn’t withstand more cost increases because the bottom line has been eaten into so much.

“The Chancellor and the Government have listened to that and this Budget was designed not to spook businesses – or the markets – with a promise of hope to come.

“There were some interesting announcements which we look forward to seeing more detail on – from funding for apprenticeships to longer term reductions in energy costs.

“The small business rates threshold being lifted to £18,000 is positive news for the hospitality and retail sector on our high streets and there was, of course, the announcement around reducing red tape.

“As a Chamber, we’re also really keen to see the detail behind fiscal devolution and how that will work in a region where our city is in a mayoralty and the county isn’t. Levelling that playing field is crucial for our regional economy.

“But overall, for me and the room of local leaders, it’s a Budget that will leave businesses feeling neither tricked nor treated!”

Steve Harcourt, director of Prime Accountants Group, said: “There were some tax changes – including a new Founders’ Relief and the halving of Business Asset Disposal Relief – but nothing huge.

“We have a very diverse client base and we were really keen for this Budget not to incur more costs on companies who have seen tax, wages and the cost of doing business go up and up in recent years at the expense of the bottom line.

“There was two per cent increase in tax on landlords and savings, which will affect some of our clients but overall it was a steady Budget this time round and that is welcome.”