Shropshire’s business leaders have welcomed the Chancellor’s focus on business investment and growth in his Autumn Statement.
Chancellor Jeremy Hunt’s headline announcement was a 2% cut in National Insurance, taking the rate down from 12% to 10% in January for more than 27 million workers.
He also announced changes to National Insurance rates for self-employed business people, and ‘full expensing’ to make many investments fully tax-deductible.
Other headlines included a 9.8% rise in the National Living Wage, a commitment to retain the ‘triple lock’ for pensions, and a 6.7% rise in Universal Credit and other benefits from April.
The Chancellor also said his statement contained 110 measures designed to increase the UK’s productivity.
There was also a £50 million investment pledge over the next two years aimed at increasing the number of apprentices in engineering and “key growth sectors” where there are shortages.
Ruth Ross, Shropshire Chamber’s chief executive, said: “The British Chambers of Commerce asked the Chancellor to focus on key issues that impact business, including planning, full expensing, the energy grid, and business rates.
“We are delighted to see these reflected in his announcement – as well as a commitment to helping to solve issues around late payments, which disproportionately impacts the cashflow of many smaller businesses.”
She added: “A rise in the National Living Wage is clearly good news for lower-paid workers, but we must also be aware that businesses will be looking to pass on part of this by raising prices.
“It is estimated that abolishing class two national insurance, and changes to class four national insurance will save the average self-employed worker in Shropshire around £350 a year, which will be welcomed.
“Our local pubs, and the wider wine and spirits industry, will also be delighted at the freeze on alcohol duty, having taken a battering over recent years.
“Business investment is the lifeblood of local economies, creating jobs and supporting our public services. Smaller firms will be relieved to see a package of measures that alleviate the cashflow problems they face, such as continued business rates relief for hospitality, retail and leisure.”
Ruth added: “While the announcements today signal a step in the right direction for business investment and to stimulate growth, we now need to see the Government move quickly to engage with businesses in the creation of a long-term industrial and green energy strategy.
“This will give the confidence for businesses to invest and make full benefit of the tax deductions announced today.”
Neil Lloyd, managing partner of FBC Manby Bowdler, said the Chancellor’s decision to make full expensing permanent would be welcomed by firms across Shropshire and the West Midlands.
He said: “Every business needs regular investment if it is to grow and thrive, and extending this tax relief will provide certainty for business owners and could persuade many to commit to the new buildings, equipment and jobs that their business needs.
“This tax relief is expensive though, costing the Treasury about £10bn a year, so the Chancellor will have to offset it with less popular policies elsewhere.
“For small businesses, which account for the vast majority of enterprises across Shropshire and the West Midlands, the package of 110 measures to support business growth is also welcomed as is plans for the new West Midlands investment zone.”
Steven Owen, managing director of the Shropshire construction company Pave Aways, said Jeremy Hunt’s Autumn Statement included some positive announcements.
He said: “I wholeheartedly welcome the Chancellor’s focus on business and growth, particularly business tax cuts and the extension of the “full expensing” tax relief scheme which is vital to support investment.
“The creation of an Investment Zone focused on Wrexham will bring a big boost to North East Wales and the 110 measures to drive growth will deliver a huge boost for the many small Shropshire and Mid Wales contractors and businesses which make up our supply chain.
“We are passionate about supporting and developing the economy of our local community and I am delighted the Chancellor has recognised the need to help this vital sector.
“I also welcome the changes to the planning system announced in the Autumn Statement. The country needs new homes and we need to get the property market moving again, so anything which removes barriers to planning and development is a positive move.”
Anton Gunter, managing director at Global Freight Services in Telford, said today’s decision by the Chancellor to support small business growth was to be welcomed.
He said: “We very much welcome the package of measures announced to support business growth for SMEs and in particular the move to strengthen support for exporting.
“The opportunities for small businesses to export their products and services globally are huge whether they operate from a garden shed or multiple production sites and so anything that encourages more businesses to trade internationally has to be a good thing.
“As a nation we need to be more ambitious and making sure companies can sell their goods into global markets confidently is essential.”
Mr Gunter also welcomed plans for the new West Midlands Investment Zone saying this would also put a real focus on business growth across the region.
Wayne Carter, managing director of Telford manufacturing company Fabweld Steel Products, said the Chancellor’s funding boost for the manufacturing sector was a “pleasant surprise” and particularly welcomed the focus to support plans for net zero transition.
The company, which designs access covers for the water, energy and security industries, is committed to operating in a sustainable way and reducing its impact on the environment and has installed solar panels and implemented changes to reduce direct emissions and the emissions related to its energy use.
Wayne said: “The Chancellor’s £4.5bn investment programme shows a real commitment to the industry. But it’s his £960m Green Industries Growth Accelerator that’s really caught our eye. This could prove invaluable.
“Supply chain issues caused by Covid and volatile energy prices highlighted how vulnerable our industry was to geopolitical and world events. That’s why we wanted to take back control – with investment in the greenest way possible – to benefit the planet, the business, customers and employees.
“We’re now seeing our commitment to clean energy at FSP paying off, but we’ve been lobbying local government and parliament for support for a while now, so to feel heard is a huge relief.
“But the fight’s not over yet. All we can do is hope that this investment proves to be transformative for the sector. The UK remains a world-leader in cutting emissions, having decarbonised faster than any G7 country since 1990, but we’ve still a long way to go for manufacturing to play its part in achieving Net Zero by 2050.”
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