Autumn Statement: Business leaders react to Chancellor’s 110 ‘growth measures’

Chancellor Jeremy Hunt has outlined an ambitious innovation drive with 110 pro-growth measures in his Autumn Statement. Some have praised the measures as a means to quell inflation and restore the economy while others have labelled the announcement as ‘misguided’ and a ‘missed opportunity’. Read on to find out more…

Firstly, the Chancellor announced a £320m plan to unlock investment from his Mansion House Reforms, including measures that are expected to provide an additional £1,000 for pension pots each year while also freeing up new investment vehicles to support innovative UK companies.

On this, Andrew Drylie, Investment Manager for Quadri Ventures, commented:

“The Chancellor’s Mansion House Compact was a positive step for early-stage startups, unlocking a significant amount of previously untouchable capital from pension funds. However, if the UK is going to deliver on its lofty Silicon Valley aims, capital alone is not enough to get these startups off the ground.

“We need to invest in the infrastructure and people that can allow early-stage businesses to grow, equipping them with the right skills and guidance to support long-term growth plans and ultimately lead innovation initiatives that can help them thrive.”

Reacting to the Chancellor’s budget and plans to merge R&D support schemes, Laurent Descout, CEO and Co-Founder of Neo, said:

“In recent years, the government’s tax relief support for research and development (R&D) has been far from clear with a continuing raft of changes. As the UK seeks to enhance its strong position as a tech and science hub, it makes sense to simplify and merge the two existing R&D schemes.

“However, the Chancellor must continue to consider the challenges which SMEs face in accessing finance and his previous commitment to offer additional support for those spending large amounts on innovation.

“SMEs must continue to be entitled to the highest rate of relief possible in a merged scheme. This is essential for the growth of startups, the economy and the UK’s reputation as a leading fintech and innovation hub.”

Al Lakhani, CEO of IDEE, added upon this with concerns surrounding cybersecurity and its significance to businesses:

“From a tech perspective, there were positives in Hunt’s speech, but also some glaring holes, not least where cyber security was concerned.

“As a severe and universal threat to businesses and nation-states alike, it is imperative that the public and private sectors work together to create an environment that allows for the development and adoption of world-class cybersecurity solutions.

“Simplifying R&D tax credits has been a necessity for years, and the Chancellor was right to acknowledge this, albeit very briefly. But it is too early to celebrate; we need to see what shape the reforms will take, and what types of R&D investment will be eligible.

“Cybersecurity must be one such area, as it is imperative that companies are encouraged to invest in robust cybersecurity infrastructure. Much more can be done to facilitate progress in cutting-edge cyber security, and today was a missed opportunity.”

Alex Bouaziz, co-founder and CEO at Deel, said of the Chancellor’s ‘back to work plan’:

“It’s positive to see the government looking for ways to help benefits claimants suffering with mobility and mental health problems return to work, but this is just a band-aid fix to a bigger staff shortage problem.

“The Chancellor’s ‘back to work’ plan doesn’t involve solutions for parents or caregivers who can make a significant contribution to the UK workforce, but who need more flexibility and support to do so.

“If we’re going to harness this potential and plug staff shortages successfully, we need to focus on measures that encourage flexible working and offer support in areas such as childcare and mental health.”

Ben Howarth, CEO at social housing provider Howarth Housing said, in response to the Autumn Statement:

“Today’s Autumn Statement demonstrates how much the government has lost touch with the people they represent, and what support and investment in grassroot services is needed The focus, again, is investment in big business.

“Previous discussions about the Local Housing Allowance rate indicated a rise of 11%, today’s 6.9 per cent increase go nowhere to help people. Considering the UK is in a housing crisis, I had expected more investment in UK-wide housing projects and solutions.

“The aim to get people to get back to work after an 18month period on welfare benefits, with no clear plan of how this is going to be resourced or implemented, shows a lack of understanding of what is happening at a grassroots level.

“People who are unable to work need proper multi-service support. These new measures will only push people already at breaking point, further into poverty.”

Mohsin Rashid, CEO of ZIPZERO, reacted to the announcement of National Insurance cuts:

“All the National Insurance cuts in the world will still fall short of rebuilding the pile of rubble that millions of Britons’ finances have been left in after years of fiscal chaos. Hunt’s priorities are understandable, he has to paint a picture of long-term economic prosperity, but his focus was also misguided.

“It’s all very well for him to pat himself on the back for introducing policies that will put more money in people’s pockets in the long-term, and may eventually contribute to restoring economic stability (providing of course that they don’t spike inflation). But where is the relief that is so sorely needed by those still struggling to put clothes on their backs and food on the table?

“The cost-of-living crisis is far from over, bolstering immediate, short-term support like energy bill relief and cost-of-living payments was crucial but did not materialise. Meanwhile, it is plain to see that these cuts predominantly benefit those whose pockets are already well-lined.

“Time and time again, the people who truly need support, lower income households, are left to fend for themselves by Hunt’s wanting fiscal policies, while he turns a blind eye in the name of ‘growth’.”

The Mayor of West Yorkshire Tracy Brabin added:

“Lower taxes alone will not lift our economy out of this long-term rut caused by thirteen years of underinvestment and cuts to public services. The only way to raise living standards, end the cost of living crisis and cut taxes in the long-term, is by investing in the things that really matter – housing, education, health and transport.

“As economic growth grinds to a halt, the need to level up and tackle inequalities is as pressing as ever. Local leaders stand ready to deliver on ambitious plans for their regions in a way that you cannot do from Whitehall.”

By Matthew Neville – Senior Correspondent, Bdaily

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