North East businesses react to the budget

North East Chamber of Commerce Chief Executive, James Ramsbotham, said more was required from the budget to stimulate growth.

He said: “There are numerous positives to be taken from this year’s budget and it’s good to see recognition of some of the NECC priorities put forward in our Budget submission to the Chancellor, in particular the cutting of taxes that raise the cost of employment. We also welcome the new measures on fuel duty and home ownership. However, the Government has fallen short of providing the raft of measures that businesses and investors need in order to kick-start growth.

“Growth remains the keyword and the Government must do all it can to get the economy moving. I would like to have seen additional support for employers with more focus on investment. The announcement on Corporation Tax is welcomed and will benefit businesses with headquarters in the UK, but more is required to stimulate economic growth, particularly as we know through our own Quarterly Economic Survey that North East companies stand ready to invest and continue recruitment.

“Compared to the Autumn Statement the Budget is un-compelling with very little on skills, inward investment or support for exporters, which is surprising given the export targets set by the Chancellor. Many regional businesses will wish the Chancellor had been more radical in the pursuit of growth.”

Sean Anderson, a director of Chester-le-Street-based firm Northern Construction Solutions, welcomed the extra £3bn in spending on infrastructure which will take effect in 2015/16 – but said the investment was needed now.

“Spending on infrastructure makes Britain more attractive to investors and more competitive so the Chancellor announcing a £3bn investment in transport and infrastructure is a step in the right direction,” said Mr Anderson.

“But it needs a more ambitious spending approach. There are transport infrastructure programmes that have been shelved in the North East which, with investment now, would help kick-start the economy.

“As well as transport, we would have liked also to have seen infrastructure developments linked to energy, such as the building of more nuclear power stations.”

Bryan Bunn, Managing Director of the Nortech group of companies, a successful professional engineering design and project management company based at Wynyard, commented: “From an energy sector perspective, this Budget is good news, as it provides vital support to emergent areas of specialism such as the shale gas market.

“The tax breaks will be a vital kick-start to the shale gas industry and will help to create more jobs in the rapidly expanding oil & gas market. This measure will also help to boost supply chains and jobs creation in other industries, and boost the economy as a whole.”

John Weir, managing director of County Durham-based Wear Inns, welcomed the scrapping of the beer tax escalator.

He said: “Since the beer tax escalator was introduced in 2008 it has contributed to the closure of thousands of pubs, the loss of thousands of jobs and penalised responsible drinkers.

“The Chancellor has taken a step in the right direction by scrapping the escalator and cutting duty on beer by 1p which is very welcome.

“The North East and Yorkshire markets are still dominated by beer and lager drinkers so it is good news for pubs and clubs.

“However, while we have seen duties rise by some 42% since 2008, increases continue to be applied to wine and spirits while supermarkets are still able to offer cheap booze, so the situation remains very tough for publicans.

“We look forward to seeing the details on how the government plans to tackle the cheap booze issue but for now we raise our glass to the Chancellor for listening to campaigners and helping the industry with this cut.”

Nigel Mills, chairman of North East organisation, the Entrepreneurs’ Forum, said: “This Budget is a step in the right direction for entrepreneurs who want to see action to simplify taxes and encourage enterprise. The cut in corporation tax, the reduction in employers’ NI, the single fund for enterprise and investment in infrastructure are all to be welcomed.

“The growth forecasts are disappointing but won’t put off the positive people who have decided to invest in their own businesses and help build a strong regional economy.

“Our members are growing their businesses and creating jobs in spite of the challenging conditions. Entrepreneurs will always take the positives and use them to best advantage.”

Mark Dowdall, environment and community director at north east developer The Banks Group, said: “Anything that can be done to build some much-needed momentum in the construction industry and housing market should be welcomed, particularly with respect to jobs and contracts within the supply chain industries, which have experienced some especially difficult times recently.

“However, we’ll obviously need to wait and see how the ideas and principles announced by the Chancellor today translate into tangible outcomes over the longer term.”

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