Hampshire Chamber CEO responding to the Autumn Statement
Responding to the Autumn Statement on Thursday 17th November, Ross McNally, Chief Executive and Executive Chair of Hampshire Chamber of Commerce, said: “Given the economic situation, businesses were braced for a tough series of tax rises and spending cuts with the aim of addressing the fiscal shortfall and setting us on a path to stability.
“And indeed, the freezing of tax thresholds and allowances for extended periods, and the decision not to reverse the planned rise in Corporation Tax, were among the painful announcements that will only add to the current pressures that businesses are facing.
“Yet, some targeted measures will be welcomed such as the £13.6 billion package of business rates support, the removal of import duties on key goods for certain industry sectors and the refocusing of the Investment Zones programme around universities and areas of most need.
“The increase in the national living wage, although adding cost to the bottom line, should encourage more people into work and so help to mitigate some of the crippling skills shortages that are hampering business investment and growth.
“The Chancellor said he recognises that economic growth is needed to avoid the ‘doom loop of ever higher taxes and ever lower dynamism’.
“The question is whether or not he has done enough to encourage confidence, ensure we can stay competitive and incentivise most businesses to invest.
“Against such a difficult context and the need to reassure markets on the fundamentals of tackling the deficit, this was not an Autumn Statement for long-term growth.
“While it contains many tax-raising measures in focused areas to help stabilise the economy and safeguard public finances in the short term, the government needs to do much more to champion long-term growth and drive overall business investment.
“We sometimes complain at Budget time about a ‘jam tomorrow’ message since it can indicate an unattainable future promise, but on this occasion such an offer would have been most welcome.”