Autumn Statement: What Yorkshire businesses want to happen

As George Osborne, the Chancellor, is set to deliver his Autumn Statement and the Spending Review to the UK later this week, Bdaily asked businesses throughout Yorkshire for their views on what they are want to see from the third major economic statement this year.

Jonathan Oldfield, managing director of Riverside Waste Machinery, based in Boroughbridge, York: “We’ve read some encouraging reports in the national news recently. The UK economy is set to outstrip the Eurozone in terms of growth, according to the latest Economic Outlook released by the Organisation for Economic Cooperation and Development (OECD), for instance.

“A ‘robust pace’ is the term used to describe the momentum that the UK is predicted to experience over the next two years, with employment figures projected to continually rise.

“More regionally, in Leeds, we’ve been met by the news that investment in office space has rocketed to an eight year high, with the city’s headline rates forecast to hit a record £28 per sq ft. If that’s not a sign of business confidence and future prosperity, we don’t know what is.

“It’s therefore incredibly disheartening to also read news of ongoing halts on government spending. Threats of police budget cuts have dominated the headlines for some time, for example, although thankfully the funding reforms have been delayed until 2016/17, following calculation errors admitted by policing minister Mike Penning.

“Potential cuts that will affect the waste industry, are also being debated at present. In a recent statement by Chancellor George Osborne, we learned that a provisional agreement has been reached with Defra, to cut day-to-day spending by 30% over the next four years.

“We’re not naïve enough to think that signs of economic buoyancy mean the cuts will stop. We know there was a huge mountain to climb to get the UK back on track. And we know there is still progress to be made.

“But sometimes the short term need to save money is worrying. The repercussions can stretch long into the future, and be quite difficult to fix.”

Simon Howship, managing director of Huddersfield-based Common Agency, commented: “It’s not unusual, in this final quarter of the year, for the chancellor to reveal some positive statements – and even incentives – that leave the business community feeling optimistic about the year ahead. I therefore wait with baited breath to see if George Osborne announces any more ‘giveaways’ in this Autumn Statement, especially for SMEs.

“Very few people would have predicted the employers NIC relief uplift to £3,000 in April 2016, for instance, and what a significant impact that will have within businesses. I hope, however, that any new opportunities will offer real value, rather than them simply grabbing headlines. Longer term motivation such as reductions to corporation tax are welcome of course, but business leaders won’t get as excited about such revelations now, because they’re harder to equate to more imminent day-to-day benefit.

“Overall, this statement must categorically promote confidence for the economy moving into 2016. Party politics aside, it must be something people can genuinely believe in. It needs to have substance, and be based on facts, so we have faith that things are going to happen. False promises will only rock the feeling of optimism that has started to emerge, and give the opposition something to criticise.

“Any further red tape at this stage would also be disastrous. I welcome anything that removes some bureaucracy from the way organisations operate, and also initiatives that create a more level playing field between businesses large and small.

“Wouldn’t it be great if there was some regionalised commentary and action too? Let’s celebrate success stories throughout the country and encourage further investment, on a microscopic level, where needed. This should fit George Osborne’s goals for devolution, so maybe this isn’t such a far-fetched prediction.”

Stephen Waud, group chief executive of the Business Enterprise Fund, said: “We’re looking forward to legislation being brought into place to ensure that Banks match SMEs rejected for finance with alternative lenders. Not everyone is aware of what alternative finance is on offer; this legislation will lead to more businesses receiving the finance they need.

“I would welcome additional Government guarantees to support access to capital to Responsible Finance Lenders (formally CDFI’s). It is vital that Responsible Finance continues to unlock capital to ensure its lenders can continue to operate sustainably and grow.

“In addition to this I am keen that the RGF contract is extended. RGF monies are necessary to build into a loan fund which will have to increase in size. With all banks referring clients to alternative sources of finance there will be a much greater demand and pressure on these funds.”

Elizabeth Ward, principal at Leeds-headquartered specialist IP and intangible assets firm Virtuoso Legal, added: “It’s vital that more is done to encourage businesses in the UK to create and develop intellectual property in order for us to keep up with our international competitors. By way of example, there is currently far more awareness and use of IP rights in the USA, Germany, Japan and even China.

“In 2011, David Cameron commissioned an independent review of the UK IP system, known as the Hargreaves Review. It highlighted a number of areas that could improve to help facilitate UK economic success, including improving the efficiency of the patent system, which led to the Intellectual Property Act 2014. This commitment to streamlining and simplifying the IP process will help UK businesses to reach their full potential and compete on an international level, but the support needs to continue and failing to do so could seriously jeopardise the UK’s position as a leading innovator.

“Financial support is key. Over recent years, businesses have been able to take advantage of the corporation tax R&D Relief, as well as the Patent Box – these tax reliefs are designed to encourage companies to commercialise their patents and R&D. The latter, however, is due to close next year with no details of its successor. It’s paramount for such tax incentives to continue in order to encourage and enable businesses to invest in valuable R&D and to file for protection.

“But it’s not just British businesses and individuals that we need to support. We need to encourage incoming entrepreneurs, academics and investors to come to the UK and partner with British establishments. Successfully doing this will complement the talent and ability we already have in this country, while boosting the economy, creating jobs and inspiring innovation. A great example of this is the discovery of the wonder material, graphene, which was pioneered by two Russian-born scientists at the University of Manchester. Since the discovery, a £61million National Graphene Institute has opened at the University of Manchester and 35 companies from around the world have partnered with the university to develop projects around the material. That represents a very significant inward investment into the UK.

“The UK is already a leading technology and science hub, but we still have further work to do to stimulate growth and success. My view is that we need companies still need help and government with prototyping and proof of concept. This could be done via further tax relief on such work. UK businesses, universities and institutes have the ability to get us there, but they need support and resources. I hope there is some positive news in the Autumn Statement and that the government has the foresight to invest and empower businesses to achieve their full potential and more. It’s an exciting time for UK innovators, but without the support now, the opportunities are sure to pass us by.”

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