Sarah Moorhouse Reacts to Spring Budget 2024

06 Mar 2024

Published in: Black Country Chamber of Commerce News

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The Chancellor’s Budget will have given businesses a reality check about the options being taken by the Government to help businesses stabilise and start looking forward with a little more clarity.

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Sarah Moorhouse, CEO at Black Country Chamber said:

"Today’s announcements will be given a cautious welcome by Black Country businesses, who had realistic expectations about the likely changes that could be made given the challenging economic environment.

"With a strong base of start-up and micro-businesses, all ably supported by the Chamber to grow and expand, the VAT turnover threshold increase from £85,000 to £90,000 gives our members more breathing room to expand without increasing their costs. The news that inflation is expected to fall below 2% this year is a welcome prediction, and further adds to business optimism.

"The announcement of a further cut to National Insurance and extension of the freeze on fuel duty will help consumers and employees of companies who have felt massive pressures in recent years around interest rates, the cost of living, inflation and the uncertain outlook.

"Changes such as reducing National Insurance will help staff, particularly lower paid workers, given the price rises seen over the last two years.

"However, our members will have been hoping for greater positivity around taxation for businesses in order to plan future progress, which was in short supply in today’s Budget.

"Businesses need to feel more confident against a backdrop where they worry about recruitment, wage inflation and rising energy costs, all of which they see as barriers to growth.

"They would have hoped for even a small reduction in corporation tax which could allow them to invest in their team, secure new equipment or support employees still struggling with the cost of living.

"The announcement of a two year extension to the Recovery Loan Scheme, launched during the Covid pandemic to support small businesses, is a positive step to allow companies to access finance in challenging times.

"Our most recent survey showed Black Country businesses bucked the national trend around confidence, with the Quarterly Economic Survey (QES) for Quarter 4 showing 71 per cent of firms believed turnover will improve in the next 12 months, up from 55 per cent three months earlier and ahead of British Chamber of Commerce’s national 56 per cent of firms.

"After the economy entered recession, it will be interesting to track member sentiment in the months ahead following today’s Budget and with a General Election ahead of us."