Budget contains 'positive signs' for future says Black Country Chamber CEO

Black Country Chamber of Commerce CEO Sarah Moorhouse said the autumn statement, delivered by Rachel Reeves today (October 30), contained "positive signs for the future".

However, she warned that the region's businesses were "bracing themselves" for increases to employer's national insurance contributions and a 6.7% uplift in the national minimum wage.

But she said a freeze in the rate of fuel duty was good news, and the Government's pledge to tackle economic inactivity and expand opportunities for small and medium sized businesses were also welcome signs for Black Country business.

"Today’s Budget will concern businesses as they prepare for the drop to the employers’ National Insurance thresholds and increases in their employer National Insurance contributions," she said.

"Local surveys and recent feedback from our members confirmed that companies had adopted a wait and see approach to investing ahead of the Budget as they expected to see increased taxation impact their companies.

"However, the freeze on fuel duty will be welcomed and businesses will also welcome the announcement of a ‘modern industrial strategy’ along with nearly £1bn for the aerospace sector, more than £2bn for the automotive sector and up to £520m for a new Life Sciences Innovative Manufacturing fund."

During the much-anticipated budget announcement, Labour's first since taking office in July, Chancellor Rachel Reeves said there were "no shortcuts" to getting the country's economy back on track, adding: "The only way to drive economic growth is to invest, invest, invest."

The government said a commitment of over £2billion for the automotive sector, the electric vehicle industry and the manufacturing sector would "build on our strengths in the North East and the West Midlands."

The Chancellor added that an increase in the employment allowance from from £5,000 to £10,500 would mean 865,000 smaller employers won’t pay any national insurance at all next year.

Ms Moorhouse said that businesses in the Black Country would welcome a further government commitment to restoring economic stability and increasing investment as part of the budget.

"Our economic surveys conducted over the last 12 months have shown Black Country businesses had higher confidence than national Chamber of Commerce survey results, so we are backing our region’s resilient firms of all sizes to make the most of the positive opportunities out there," she added.

"We hope that now they can analyse the detail of the Budget after weeks of speculation, they will be encouraged to move forward knowing more of the impact.

"The Chancellor said she wanted to deliver on a drive for economic growth based on being able to ‘invest, invest, invest’ which we broadly welcome."