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28
Oct
‘Breathing space’ or ‘big challenges ducked’? Local Budget reaction
Local politicians and business leaders have given a mixed reaction to today’s first Budget by Chancellor John Healey.
Mr Healey announced measures such as a 3.9% increase in the national living wage, an increase in the threshold for small business rates relief from £12,000 to £18,000 and £100 household energy payments for 20 million homes.
David Skaith, the Labour Mayor of York and North Yorkshire, said the Budget “gives families and businesses in York and North Yorkshire breathing space today and hope for the future”.
He added:
Direct support to help people with energy bills and hospitality businesses, which are so important to our regional economy, will ease the pressure that many people and businesses are feeling right now.
Investment in local apprenticeship services and greater local decision-making will mean that more of the money raised here is spent here. That means fewer decisions about key spending will be made in London, with more decisions made right here in York and North Yorkshire.
Tory criticism
But Andrew Jones, chairman of Harrogate and Knaresborough Conservatives, said the Budget "failed to rise to the occasion”.
He added:
The gap between what the government has announced today and what our country needs is huge.
After two budgets that have been widely slammed for breaking promises, increasing taxes and ignoring challenges such as defence and welfare, this budget has fallen into the same trap.
Big challenges ducked or decision day postponed and instead a flurry of small measures announced. I counted nearly 100 and they were announced at speed. This is one time when reading the small print will matter enormously.
However, Mr Jones praised the decision to allow mayors to keep more of the business rates raised locally, which he said “incentivises them to promote economic growth”.
Budget breakfast
Martin Mann, chief executive of Harrogate District Chamber of Commerce.
Harrogate District Chamber of Commerce is holding a post-Budget business breakfast with Tom Gordon, the Liberal Democrat MP for Harrogate and Knaresborough on Friday.
Chamber chief executive Martin Mann welcomed the higher threshold for business rate relief, which he said "should ease the pressure on high street shops, cafes and venues" as well as the continued tax relief for firms investing in equipment.
He added:
Many will be less pleased that employer National Insurance, raised recently, was left alone. Alongside the 3.9% rise in the minimum wage, which we support in principle as part of fair pay, it leaves small employers with tight margins facing higher payroll costs, at a time when growth is forecast at only 1% next year.
Tax relief
Victoria Wainwright, chair of West & North Yorkshire Chamber of Commerce
Victoria Wainwright, chair of West & North Yorkshire Chamber of Commerce, said it was pleased there were no new taxes.
She added:
The rise in the threshold that firms begin paying business rates is to be welcomed, especially for those working in retail and hospitality.
Similarly, increased fiscal devolution to our mayors will mean greater decision-making powers in our communities. The £15m in funding for Leeds College of Building will also make a huge difference to construction skill capacity for the whole region.
However, there still remains significant challenges for employers that were not addressed in this Budget. Next year’s Spending Review needs to focus on reducing the significant cost pressures facing businesses if the country is to deliver the growth it needs.
What's your view? Comment below.
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