Ross McNally, chief executive of Hampshire Chamber of Commerce, said of the Government’s Spending Review this week: “The key question is whether or not the Chancellor has done enough to secure consistent investment so as to unlock business confidence and opportunities for growth.
“We of course welcome the headline commitment to invest in skills and critical infrastructure, but this comes against a backdrop of extremely low business confidence.
“Business performance needs to pick up quickly and substantially in order to generate the wealth and tax receipts that will enable that wider investment to happen.
“It remains a challenging time of cost pressures for too many firms, and so if the economy does not perform in the coming months, we could face the prospect of more tax rises come the autumn.
“We would have liked to see much more government support announced now to open up supply chain opportunities and enable our small and medium-sized enterprises to win procurement contracts. That remains a major challenge for many.
“At the same time, we are looking at a reduced budget at the Department for Business and Trade over the next three years which is not good news.
“Portsmouth was the only location mentioned south of Swindon in the Chancellor’s speech. It was overly focused on the north and other parts of the UK rather than Hampshire and the South East.
“That said, her commitment to boost spending on defence capability, security and intelligence, energy, life sciences, home-grown AI and green tech is brilliant for our region.
“Given our strengths in all these areas, Hampshire is ideally placed as a driver for positive change. We are already an industrial ‘superpower’ for defence industries.
“We also welcome the 350 or so ring-fenced pots of money she announced for local investment coupled with the commitment to address gaps in training provision through Local Skills Improvement Plans and Skills England.
“If we are going to rebuild communities through new affordable homes, hospitals and so on, we’re going to need many more skilled construction workers to do the job.
“Across Hampshire’s business community, we continue to stand ready to work with government to progress the industrial strategy and unlock growth, but government must likewise work with us to restore and build confidence.”
Responding to the Comprehensive Spending Review, Alex Veitch, Director of Policy at the British Chambers of Commerce, said:
“Business has been waiting for Government to show it understands the deep-rooted problems holding back our economy and how they can be solved.
“Today we have seen signs they get it, with action to address some of the key issues that can help firms.
“The Chancellor’s pledges on £15bn of regional infrastructure investment, a £14bn commitment to Sizewell C and an £86bn package for research and development funding can make a real difference.
“But the government must not give with one hand and take with the other. While plans for investment are welcome, we are clear that, if we are to sustain meaningful growth, there can be no further taxes on business in the autumn budget.
“Firms will also want to hear a lot more about the replacement for the Shared Prosperity Fund. The current information about the new scheme suggests it may be more limited in nature, and broad access to this scheme will be essential.
“These issues aside it was welcome to see a £2bn focus on Artificial Intelligence support. Many SMEs tell us they are still struggling with how they will get the best from AI, if they plan to use it all.
“The £6bn set aside for munitions production and separate funding for carbon capture, usage and storage clusters, including the Acorn Project in Aberdeenshire, are also critical to supply chains across the UK.
“New infrastructure projects will also provide investment opportunities for these supply chains, generate wealth, which is injected back into their regions, and create additional economic capacity.
“So, it was also good to hear the Chancellor talking about the government’s commitment to training, education and skills.
“Too many times in the past, big infrastructure projects have been beset by inefficiencies, delays and costs overruns.
“If we are to build on a greater scale across the whole country then we need a pipeline of new planners, carpenters, architects, technicians and construction workers.
“That’s why guarantees of £1.2bn per year of future funding for apprenticeships and training is so important.
“Today’s announcements provide us with the broad framework of where the government will invest. But the forthcoming Industrial and Trade Strategies will still have heavy lifting to do if our economy is to achieve the strong and sustained growth, we all desire.”
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 business network is designed to help any employer to grow and thrive irrespective of their stage on the enterprise journey.
About the British Chambers of Commerce - Where Business Belongs
The British Chambers of Commerce (BCC) sits at the heart of a powerful network of 51 Chambers of Commerce across the UK, representing thousands of firms. It provides a unified voice for these companies, rooted in their communities, at the national level. We link our UK network with over 75 international member chambers, to promote trade and investment, and work for a better future for businesses around the world.
For more information, visit: www.britishchambers.org.uk