Business leaders hope Budget help will ease cashflow squeeze

Chief executive Richard Sheehan said: “With rising energy costs, higher raw material prices, mounting debt as a result of the pandemic and tax increases due, many firms are facing a cashflow squeeze.

“So some of the measures which have been introduced will certainly be welcomed.”

Mr Sheehan said the 50 per cent one-year discount in business rates for the retail, hospitality and leisure sectors would make a significant difference to many Shropshire companies.

And he said the small producers’ relief for alcohol producers could boost the county’s many artisan beer and cider makers, with the new draught relief on beer duty also helping struggling pubs.

And with petrol prices at record highs, he said the freeze on fuel duty and cancellation of the planned rise in fuel duty would be viewed as some small comfort to drivers.

“There is no doubt that the eight per cent cut in Universal Credit taper rate for those who are in work will also make a significant difference for the county’s lowest paid workers,” he added.

On the rise in the National Minimum Wage, Mr Sheehan added: “While businesses support the minimum wage, the size of this increase will cause concern, especially with so many smaller firms already struggling.

“There is a limit to how much more firms can continue to absorb rising costs before they have to raise their own prices adding to inflationary pressures."

Paul Madeley, managing director of Madeleys Chartered Surveyors, Much Wenlock, said: “It is fine for the Government to allocate £1.8bn to build 160,000 new homes on brownfield sites, but this does not address the issue in rural areas like Shropshire.

“Young professionals can’t afford to stay in the villages they’ve grown up in because there’s no smaller houses or houses for first-time buyers. It is something of a chicken and egg situation as there is little in the way of infrastructure because there is nobody to use it. More houses means more demand for schools and shops.

“Rural areas need small developments to keep young people in their communities and keep these communities going.”

Shropshire’s base architects welcomed the Government’s announcement of a new brownfield redevelopment fund, particularly given its focus on levelling up in the areas of the country that will benefit most from this cash injection. The fund will create new housing in brownfield areas where previous development has already taken place.

Senior associate Joe Salt said: “Coupled with this summer’s relaxation of permitted development rules, this will cut red tape for developers to bring much-needed new housing into areas that are often neglected and seen as being in decline. This will, in turn, breathe fresh life into the communities around these areas and also provide new transport links and community green spaces.

“We are really excited about the opportunities this will bring to rejuvenating sites and buildings that have fallen out of use. "

Coverage Care Services, Shropshire’s largest not-for-profit care provider, welcomed the Chancellor’s efforts to support workers by increasing the National Living Wage but highlighted that for some sectors, the measure did not go far enough.

Samantha Woosnam, head of human resources at Coverage Care, said: “What many sectors need is more support from the Government with recruitment. Putting up the National Living Wage is great news for workers but for many employers it’s an added strain when they are already struggling to recruit people to fill vacancies."

Award-winning Shrewsbury wine estate Hencote welcomed an overhaul of the way alcohol is taxed. incuding scrapping the tax premium on sparkling wine.

Mark Stevens, Hencote general manager, said the move would see the level of duty on sparkling wine reduced so that it was in line with that of still wine and help give English producers an advantage over imported bottles.

“At a time when the English wine industry is really starting to take off – and when its sparkling wine is earning respect right around the world – this is very good news," he said.

Wellington-based supported employment and training charity Landau, which assists thousands of individuals each year to secure training and sustainable jobs, welcomed the Chancellor’s £3bn funding boost for skills and training.

Chief Executive Sonia Roberts said: “We are particularly pleased to see an additional £550m being invested in adult skills to support those without any qualifications beyond GCSE level.

“We’re currently working with a growing number of people who are out of work and need additional training to secure employment, so we’re hoping this funding will support the upskilling of these individuals and contribute towards lowering unemployment levels across the region but as always, we are yet to see the small print of the proposed funding plans and exactly what it will mean.”

Marches Local Enterprise Partnership chairman Mandy Thorn gave a cautious welcome to the Budget, but was disappointed that the Chancellor had failed to offer clarity on the future of local enterprise partnerships, which have been the subject of a much delayed Government review.

The Marches LEP — which this year marked its tenth anniversary — was established by the Government to bring the business community, public sector and academia together to drive economic growth across Herefordshire, Shropshire and Telford & Wrekin.

Mrs Thorn said: “We certainly welcome the Chancellor’s announcement of additional help for some of the sectors hardest hit by Covid, such as the 50 per cent business rates discount for the retail, leisure and hospitality sector and the extra investment in the British Business Bank to help businesses with access to finance.

“We also support announcements around improved funding for regional transport, extra money to improve skills and training provision and help to develop housing on more brownfield sites – all of which will play a key part in developing our own regional economy."