Responding to the Autumn Budget, Ross McNally, Chief Executive and Executive Chair of Hampshire Chamber of Commerce, said:
“Because of the widely recognised shortfall in public finances, it was clear this Budget would mean higher costs for our members and other businesses and that is indeed what we now face.
“From higher National Insurance contributions for employers to capital gain tax increases for individuals and firms, a range of changes and measures will make this year a real challenge.
“The prospect of a hit to the bottom line affects all kinds of decision making on the scope for investment in people, premises, equipment and tech.
“That’s especially true in the short term when you haven’t budgeted for extra cost. You can’t simply put up prices or improve productivity immediately.
“The key test for the Chancellor is the extent to which such higher costs on business are balanced with measures to incentivise medium term growth.
“That’s because revenues raised from business taxes can only be sustainable if those required to pay them are making sufficient profits to do so.
“And businesses must be able to reinvest in their own growth so that future tax receipts can continue to flow from their success.
“To help mitigate the ‘hit’, we therefore welcome other Budget measures announced by the Chancellor such as the 25% cap on Corporation Tax, the freeze on fuel duty and the continuation of the full-expensing system of capital allowances for investment in plant, machinery and IT.
“Measures to alleviate the impact of business rates through ongoing reliefs, while falling short of full-scale reform, will also be a help to many businesses.
“On balance, we understand the need for short-term pain for help create the right conditions to drive investment and prosperity, but this is certainly a tough Budget for businesses with a heavy burden to carry.
“Businesses now need a ‘contra deal’ with government. We stand ready to partner with policymakers to ensure there is an ongoing framework for growth and an industrial strategy that restores stability, enables investment in key infrastructure and boosts future economic prospects.
“But in return, government needs to be pragmatic. By all means, seek efficiency savings within departments and look to control public spending, but there should be no further taxes on job creation or business growth. If we depress business investment through a tax on jobs, it is simply counterproductive to what government wants to do and will act as a major disincentive to partnership for the rest of this parliament.”
About Hampshire Chamber of Commerce
Hampshire Chamber of Commerce is the independent voice of local business across the county and one of the largest regional business networks in the UK. With a strategic vision to ‘unlock Hampshire’s potential’, Hampshire Chamber brings together the combined influence, strength and expertise of the county’s three former major chambers. It works with over 2,000 individual firms spanning all sectors and sizes of business. Member services include training, advice, international trade documentation, events, networking opportunities and lobbying to policymakers on issues affecting business. Hampshire Chamber’s PEER network (standing for Participation, Engagement, Expertise and Reputation) is a member community designed to help any employer to grow and thrive irrespective of their stage on the enterprise journey.