Black Country Chamber Comments on the UK Government's 'Mini Budget'

23 Sep 2022

Published in: Black Country Chamber of Commerce News

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The UK chancellor, Kwasi Kwarteng, has announced a sweeping package of measures in his mini-budget, including a number of tax cuts that will have a huge impact on millions of businesses and individuals.

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Commenting on the announcement, Jonathon Gray, Policy and Campaigns Manager at the Black Country Chamber of Commerce said:

"The ‘mini-budget’ provides a welcome boost for businesses navigating a difficult period through high inflation and massively increased energy and raw material costs. The ambition of the 2.5% growth target is very welcome news, but the development of a long-term strategy on this ambition and a plan for future sustainable energy security is urgently needed.

“The announcement this week of the price cap and measures to energy prices will be of great relief to businesses across the Black Country region, especially those in energy intensive industries. This coupled with the reversal of National Insurance and Corporation Tax rises, and the Investment Allowance remaining at £1 million, will also come as welcome news to help alleviate the pressures on businesses trying to navigate these difficult times.

“This said the proposals will only take prices back to Spring 2022 prices rather than the significantly lower Spring 2021 prices, and we can only hope that these measures, though welcome, are enough for higher energy use businesses. Additionally, the impact this budget may have on the value of the pound will hopefully be short term, or this may serve to further increase costs for those businesses that import raw materials in the longer term.

“The government’s ambition to return the UK economy to growth will be welcome news, especially with the West Midlands getting a special mention as an area under consideration for newly proposed ‘low-tax’ Investment Zones to help encourage investment and growth in specific locations, with some reports suggesting these may land in the Black Country.”

We have continued to see Sterling come under some serious pressure, and now at 37-year lows, at sub $1.11 against the Dollar, and €1.1356 verses Euro. The Chamber's commercial partner, Halo Financial, offers members a better way for the most globally active and ambitious companies to transfer money across borders. Their experienced team of Currency Consultants are focused on mitigating foreign exchange risk associated with international trade. By applying bespoke solutions, Halo Financial will protect revenues and profit margins, helping your business trade successfully across borders, and grow with confidence. Find out more here or email blackcountrychamber@halofinancial.com. 

A summary of the mini budget for Black Country businesses will be released next week.