Hesitant response to budget from business leader

June 23, 2010
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There was much for business to welcome in the Chancellor’s first budget. But it has also raised a number of questions and created some fears.

It was good to hear an emphasis put on the need for the recovery to be led by the private sector and referral to supporting private enterprise and providing incentives for people to go out to work.  And the announcement that Corporation tax will fall gradually to 24% and the Small Companies tax rate will be cut to 20% and not increased to 22% as had been planned by the previous Government.

Among the questions will be just how some Government Departments will deliver savings of up to 25%, what impact the rise in VAT will have on business and the economy in general, and just what cuts will local authorities face? Some answers will come with the announcement of the Public Spending Review in October.

Ian Larrard, Director of GWE Business West’s Initiative in Swindon and Wiltshire said, “The Budget confirmed that Regional Development Agencies inEngland will be replaced by Local Enterprise Partnerships. A White Paper is expected this summer. GWE Business West is taking a lead role in bringing the business community together to be at the forefront of this debate across Swindon and Wiltshire, Gloucestershire and the West of England.“

Nicky Alberry, Chairman, GWE Business West, said, “Our fears lie in what the Chancellor had to say about generating new jobs across the country as a whole. The creation of an Economic Growth Fund to support capital projects sounds like good news but when he came to confirming the go ahead for a number of large infrastructure projects, they were all either in the Midlands or the North.

“Whilst welcoming the intention to support continued investment in capital projects, we are concerned at the lack of reference to the South West region and the many schemes now hanging in the balance in our area. There is a need to redress the infrastructure deficit in the South West and Swindon in particular, and deliver on key schemes actively supported by the business community. Many of these schemes are now under threat and businesses ever more frustrated about the lack of progress on some significant but quite basic improvements needed to enable business and the economy to function.

“There is a real risk that Government may have a perception that our area is not as needy as elsewhere. However, we know that improvements to our transport system, for example, are absolutely vital if we are to continue to grow. Therefore GWE Business West will continue to make the case on behalf of business for the need for greater investment in this area in order that the private sector can do what the Chancellor says he aspires to – deliver prosperity for all.”

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