The CBI has given an immediate positive reaction to the Autumn Statement with its director-general John Cridland (pictured) saying it “works with the realities of today and provides an imaginative framework for UK businesses as it strives to secure growth and jobs”.
The CBI had called for a Plan A plus and Mr Cridland said this was one in all but name.
“The downgraded forecasts and outlook were no surprise, but the Eurozone crisis is still hanging over us. The Government’s dogged commitment to budget deficit reduction remains the only way to maintain the UK’s triple A credit rating and low interest rates on international money markets.
“We particularly welcome the new emphasis on capital spending, and the measures to leverage private sector investment on infrastructure for roads and energy.
“Equally important for jobs and growth is the recognition that the UK’s energy-intensive users need help as a result of the unilateral increases in manufacturing energy costs from the carbon floor price and electricity market reform.”
Mr Cridland also welcomed help for mid-sized businesses saying: “We are delighted that our campaign to gain support for medium-sized businesses has been heeded and we warmly welcome the Business Finance Partnership and measures to support exports.”
Speaking during a visit to meet members in Bristol, Michael Izza, chief executive of ICAEW (Institute of Chartered Accountants in England and Wales) said: “The test for today’s Autumn Statement will be whether or not it gives businesses reasons to invest in the UK’s economic future. The combination of credit easing and other specific measures could be a lifeline to businesses, particularly SMEs who are currently struggling. However, companies will not be prepared to take on more debt until they have more confidence about the medium to long term outlook.”
