Budget is good for business, says Shropshire chamber director
The Budget has been welcomed by Shropshire Chamber of Commerce director Keith Winter, who said he was surprised by the Chancellor’s boldness.
Mr Winter, who works for Shrewsbury-based Dyke Yaxley accountants, said increasing the capital allowance from £200,000 to £1 million for two years would be a major boost for companies looking to invest in new equipment and machinery.
“The cut in the apprenticeship levy, down from 10 per cent to five per cent, will help people take on more apprentices,” he added.
He also welcomed an extra £200 million being made available to the British Business Bank, which helps fund business start-ups.
“The big help locally will be the £650 million for the rejuvenation of the high street,” Mr Winter added.
“It’s going to reduce business rates by a third for all businesses with a rateable value up to £51,000, that is going to make a massive difference.
“He’s also going to hit the big tech companies like Amazon with a digital services tax, so he will raise funds from that.”
Mr Winter said bringing forward the increase in income tax allowances would put more money in people’s pockets.
“It’s good he’s frozen duty on petrol, and it’s good to see he’s done it with beer and spirits, which will be good for the pub trade,” he said, although he also warned that the increase to the minimum wage could put more pressure on small businesses.
He also said he would be waiting to see how the Chancellor would be funding all this extra spending.
“All in all, I would say it is a reasonably good budget for the high street and the small businesses, which is what is needed here. We’re pleased with it.”
Amanda Dorel, regional director for the West Midlands at Lloyds Bank Commercial Banking, said it had spoken to businesses ahead of the Budget, and one in 10 West Midlands firms said increased investment in transport infrastructure was at the top of their Budget wish list.
“Plans to invest £28.5 billion in transport infrastructure should therefore come as welcome news,” she said.
“Transport infrastructure plays a key role in boosting West Midlands firms’ productivity and growth, with projects like HS2 set to further expand the region’s opportunities.
"The Chancellor also announced that he will increase the Annual Investment Allowance from £200,000 to £1 million for two years from 2019, in a move designed to stimulate business investment.
“Six per cent of West Midlands firms mentioned this was a top priority in our pre-Budget survey and the increased allowance could make a significant difference to small local businesses by supporting their growth and boosting productivity.”
MPs stick to party lines
Meanwhile the reaction of Shropshire's MPs was split along party lines, with Labour and Liberal Democrat politicians saying the Chancellor did not go far enough.
Conservative Shrewsbury and Atcham MP Daniel Kawczynski said he was pleased by the extra funding to support the high street.
“I’m delighted with the relief for business rates, I have been pestering the Chancellor since early summer about that,” he said.
“So many high street businesses say they are struggling with the changes in the way that people are buying things online, and that taxes are too high, putting many companies out of business.
“This rate relief will be critical to Shrewsbury town centre.”
Mark Pritchard, MP for The Wrekin, said he was pleased that more money was being made available for local government.
“This budget is good news for Shropshire and Telford’s local government, as well as the NHS and funding for social and mental healthcare,” he said.
“I am also pleased about the huge investment in defence and tech jobs.”
Ludlow MP Philip Dunne said: “I think it’s a responsible budget, improving our infrastructure, providing more funding for public services, and delivering help for the low paid by significant increases in the personal allowances for income tax.”
However Labour and Liberal Democrat councillors said the extra funding, while welcome, was nowhere near what was needed.
Councillor Shaun Davies, leader of Telford & Wrekin Council, said: “I think there is some welcome stuff in there, in terms of increases in personal allowances, concessions on Universal Credit, but it’s what I call a sticking plaster budget.
“A little bit of extra money here and there, for adult social care and looked-after children, a bit for the roads, but nowhere near enough after eight years of austerity.
"I think when he dedicated a couple of paragraphs to rates relief on public toilets, that about summed it up.”
Leader of Shropshire Council’s Liberal Democrat group Councillor Roger Evans said he was pleased by the extra money for schools.
“Schools in Shropshire are so underfunded that an extra £10,000 for primary schools in particular will make a big difference,” he said.
Councillor Evans also welcomed news of extra money for pothole repairs, although he questioned how quickly the money would reach local government.
He said: “Is austerity finished? Local authorities, and Shropshire Council would say no it isn’t, and we still need more money to improve the services.”
Councillor Alan Mosley, who is leader of Shropshire Council’s Labour group, said: “Every little helps, but this is very little. It is nowhere near enough to halt and reverse the damage that has been done by this government and its programme of austerity.”
