Autumn Statement: more support for businesses, but uncertainty remains, says Chamber
Commenting on today's Autumn Statement, announced by the Chancellor, Jack Stopforth, Chief Executive of Liverpool Chamber of Commerce, said:
"George Osborne needed to deliver an Autumn Statement that provided a credible plan for business growth while maintaining the UK's fiscal credibility. Under tough circumstances, he has managed to propose a number of measures that will be welcomed by business.
"In particular, companies will welcome the Chancellor's renewed commitments to reform employment law and simplify the planning system. Businesses will support the aim of credit easing, but will be watching carefully to ensure that viable small- and medium-sized companies can access the finance they need to grow.
"Ahead of the Autumn Statement, Chambers across the UK urged the Chancellor to invest further in infrastructure, give more support for exporters, and introduce measures to help businesses invest with confidence. He has responded in part to each of these major concerns.
"The biggest challenges to UK businesses remain global demand and economic uncertainty. Firms will give the Chancellor credit for pulling the levers under his control, but will remain concerned about the wider economic environment."
"The £20bn credit easing package announced by the Chancellor is a big shot in the arm for Britain's real economy. Credit easing measures must be implemented quickly in order to boost business confidence and increase the flow of finance to viable and growing companies. As the key link between the scheme and local businesses, the banks must swiftly regain the confidence of smaller firms by ensuring that viable companies are encouraged to take up the new source of credit on offer.
"The credit easing scheme is only part of tackling the problem of business lending. In the coming months the Treasury must act forcefully to create a framework that allows business loans to be packaged up as tradeable securities. This bold move would transform the business finance environment in the UK, and give more small- and mid-sized companies the chance to secure the financing they need to grow. In addition, the extension to the Enterprise Finance Guarantee to new lenders will help more businesses access the scheme, in turn adding to the mix of financing options available to companies."
"The publication of the National Infrastructure Plan and announcement of 35 specific infrastructure projects are welcome. For too long the UK has dithered on infrastructure while other countries forged ahead, putting in place new rail, air, digital and energy networks. The government must move quickly on the infrastructure projects announced in the Autumn Statement."
On changes to employment legislation:
"The government has gone some way to reducing the burden businesses face when complying with employment law when it announced a new package of changes last week. Consultations on deregulation are a positive step, but we now need to see real action on reducing regulation which often distract employers from growth and create uncertainty. Changes to the tribunal system and the unfair dismissal route respond directly to the concerns of employers and will act as a real boost to business confidence."
On more funding for UKTI:
"Encouraging more UK firms to export is vital to a successful economic recovery. British firms need all the help they can get when looking to trade overseas, and the extra £30m added to the UKTI budget will boost business confidence and help more companies break in to new markets. This shows a real commitment from the government to driving export growth over the months and years ahead."
On business rates:
"Unlike larger companies, small businesses are hit disproportionately by changes to business rates. The Chancellor's one-year extension of rate relief will come as welcome news for the smallest businesses. While the decision to give businesses the opportunity to defer 60 per cent of the increase in their 2012-13 is also welcome news."
On the Youth Contract:
"Youth unemployment is a huge challenge, and this package aimed at tackling the problem of record levels of young people out of work is welcome. Our research tells us that employers lack confidence in the education system. In a recent survey of over 6,000 businesses, only 29% felt very or fairly confident in recruiting school leavers with A-levels or equivalent. Many companies are working hard to invest in young people, but too often we hear that they are ill-equipped for the workplace.
"The government has to make it easier for businesses to hire young people. Employers often spend a large amount of time and money training up those young people not in education, employment or training (NEETs). The proposal to pay employers half of the minimum wage payment for the first six months will help businesses offset this cost.
"Businesses are ready to do their bit, and the Youth Contract will provide a much-needed jobs boost for the young. But the government must also look at how the education system can match the needs of business, and so the supply of vacancies available to young people."
