The Chancellor’s Autumn Statement did not go quite far enough to unlock the resources needed to maintain and improve the region’s business infrastructure, according to Business West, the business support organisation that runs the Initiative in Swindon and provides export and high-growth services.
There was still much more that needed to be done, said managing director Phil Smith.
However, he did highlight some positives, adding that the speech was “a good indicator of Government intentions and what level of support they will provide to get the economy back on track”.
“With lower than expected levels of growth in the economy and the further revision of growth forecasts downwards for future years, businesses really needed to hear all the right things.
“The positive messages about the creation of the British Business Bank are very welcome but without a clear framework and timetable for implementation businesses are still without the support they need and their ability to grow is constrained. Ministers need to recognise the need for urgency when it comes to financing business growth and must stop stalling.
“The support outlined for some of the recommendations from the Heseltine Review is to be welcomed and it is pleasing to see the focus on devolving funding and the importance attached to the role of LEPs and business groups. We look forward to seeing how this will work in practice.
“There was also some festive cheer for businesses with the planned increase in fuel duty now cancelled, more funding for British exporters and new investment in infrastructure proposed, but proposals on house building didn’t go far enough to address the current deficit of new homes.
“We were particularly disappointed that there was once more no mention of business rates, 
when many businesses, particularly retail, have been arguing for a freeze in Business Rates to provide immediate relief, with a further proposal to move to a fairer system for future increases now looking like a lost cause. We feel this is a missed opportunity to provide the boost that business needs to help create private sector jobs and grow the economy as quickly as possible.
“Businesses in the West Country have been looking for ways to grow, export to new markets, and take on more staff in the face of weak growth and continued problems in the eurozone. However they need the right support from Government to do this.”
Jon Blake, regional director of ICAEW (Institute of Chartered Accountants of England and Wales, broadly welcomed the Chancellor’s Autumn Statement.
He said: “The Chancellor has gone for growth and wants to show that the UK is open for business. The reduction in corporation tax will be welcome news for larger companies and will encourage inward investment. The increase in the Annual Investment Allowance (AIA), which ICAEW called for, will be good news for smaller businesses. The Chancellor will hope that the new measures will impress the 67% of ICAEW business members who are not confident that the Government’s Plan A for the economy will deliver growth this Parliament.
Problem areas remained, he said. “There are still a number of juggernaut policies devised in Treasury by people who do not understand the realities of running businesses. Policies such as the new PAYE reporting system will create additional burdens on business at a time when they should be focusing on growth. Until these policies are made more flexible, deficit reduction will continue to be slow and growth will take longer.”
