Autumn statement 'curtails ambition' say Bloxwich electrical chief
The boss of a West Midlands electrical firm says a "triple dose" of budget hits announced in the autumn statement will be a "difficult pill to swallow" for businesses.
The boss of a West Midlands electrical firm says a "triple dose" of budget hits announced in the autumn statement will be a "difficult pill to swallow" for businesses.
Business leaders across the region have reacted with concern following the chancellors announcement on Wednesday (October 30), which saw a rise of 1.5 per cent to employer national insurance contributions and the threshold where businesses begin paying the tax lowered to £5,000 from £9,100.
The Government says the budget is designed to raise an extra £40billion for public services but Steve Clarke, Managing Director of Bloxwich based Teepee Electrical, says the move will "undoubtedly curtail ambition" as he said his firm was already counting the cost of the increases.
"As a business committed to progress, we have quickly calculated that some of the tax rises announced today will add approximately £140,000 annually to our expenses, inevitably driving up our prices in an already competitive market with little scope for us to pass on," he said.
"While we fully support fair wages and the need for appropriate compensation, the triple dose of National Minimum Wage, increase in employers’ national insurance contribution and starting rate reduction, will be a difficult pill to swallow for a lot of manufacturers.
"The Chancellor talked consistently about growth, yet some of the decisions she has made today will negatively influence critical decisions around spending on new technology and hiring."
Mr Clarke added that while government measures to increase take up of electric vehicles as well as support for rail and general infrastructure were welcome, the incentives announced were unlikely to provide a significant boost to industry.
"On a more positive note, [the investment measures] should benefit a lot of our customers, who purchase specialist assemblies and harnesses from us. However rather than this being the major boost they want it to be for the supply chain, an uptick in business for us in these areas will simply sustain our current position as opposed to job creation and economic vitality.
"At Teepee Electrical, we have long focused on pushing forward and growing our business alongside a remarkable team, doing our best to mitigate factors outside of our control. This will remain central to our mission, but today’s Budget does pose significant challenges to our commitment."
