"Painful blows" to firms as business leaders call for support

That was the view of Chris Greenough, Managing Director of CEL Sheet Metal, a sub-contract sheet metal manufacturing and assembly business based in Telford, who called for firm commitments on investing in the future. 

"The increase in minimum wage and employer National Insurance contributions are sure to squeeze bottom lines even further," he said. 

"In truth, it will probably compel a lot of companies to look at ways where they can enhance existing productivity and adopt better working practices – two measures that will lead to stronger businesses but may not necessarily result in the job creation that Labour so desperately are looking for.

"As an engineer I’m pragmatic and used to dealing with challenges. The Chancellor promised to end ‘short-termism’ and I think most of industry would welcome a period of stability so we can try to control our own destiny.

"The Rt Hon Rachel Reeves also spoke about investing for the future, and I am eager to see how this investment will materialise, and the tangible returns it will deliver for the economy. I am willing to support the Government, but they must, in turn, support Britain, back small to medium-sized businesses, and fulfil their policy commitments. Ringfencing a significant proportion of the billion pounds announced for automotive, aerospace and life sciences so the domestic supply chain benefits should be the starting point and oven-baked into the new Industrial Strategy.

"The latter must be pushed through swiftly and it must seek the endorsement and buy-in of companies of all sizes, including SMEs. This should create the clear roadmap they need to follow to invest and innovate. As a passionate British manufacturer, it was great to hear industry mentioned so often and I sincerely hope this is genuine and not just lip service. This budget could give us a pathway to a brighter future, but there is challenging work to do.

"We need the Prime Minister and his team to drive, deliver and indeed put the UK back at the forefront of the G7 economies.”

Adrian Haller, Managing Director of Bruderer UK, with a base in Telford, added: “We manufacture high sped presses and tend to be a good bellwether for the UK economy, as if things are good companies are investing.

"The last twelve months have continued to be positive as firms, on the whole, have been exploring new opportunities and looking into new growth markets where we are especially strong.

"Automotive, aerospace and electrification were all mentioned in the budget and,  with hopefully new money being pumped in by the Chancellor, this will generate us additional business.

"Now the BUT! The increase in NI for employers and the unexpected lowering of the threshold are two painful blows to management teams and will be exacerbated by the increase in the National Minimum Wage.

"The latter will have a far-reaching impact as it will squeeze salary boundaries and see more of your skilled and technical staff wanting wage rises to reflect the additional skills they bring to your business. Whilst we’d all love to pay our staff the most we possibly can, where does this money come from when margins are tight and shrinking by the week? Bruderer UK has long championed the need for a real focus on getting the skills that industry actually needs, and I’m hoping we’ll read more on this in the weeks to come and with further clarity on what Skills England will bring to the table.”