Autumn Budget
West & North Yorkshire Chamber of Commerce today welcomes announcements in today’s Budget to improve infrastructure in Yorkshire but expresses concern in further increases in operating costs for employers being pledged.
Chancellor Rachel Reeves, MP for Leeds West and Pudsey, used her first Budget speech since Labour ‘s election win in July to confirm that West Yorkshire Combined Authority will benefit from an integrated settlement on its finances.
She also pledged to deliver the TransPennine Route Upgrade between York and Manchester, via Leeds and Huddersfield, something many in the region hope will be the precursor to Northern Powerhouse Rail.
And the Chancellor also pledged to continue the development of West Yorkshire Mass Transit.
Work will start in the coming weeks to improve journey times between Sheffield and Greater Manchester via the A57.
However, the news that National Insurance Contributions are to rise for employers, coupled with a significant uplift in the minimum wage by 6.7 per cent, represent significant increases in overheads for businesses at a time when costs are already under significant pressure.
Mark Casci, head of policy and representation at West & North Yorkshire Chamber of Commerce, said: “It is of course welcome to see the chancellor commit to improvements in Yorkshire via enhanced devolution and infrastructure improvements.
“However, the increases to NIC contributions for employers and on the minimum wage will mean real headaches for businesses, particularly smaller firms, and mean that any plans to invest or create jobs will now become far more difficult. Tax is now the number one cost pressure cited by businesses here in Yorkshire and that situation will be exacerbated by these decisions.
“No business in Yorkshire is ignorant of the scale of the challenge facing the economy.
“In the months ahead, employers of all size will be hoping to see the cost burden they face begin to recede so that they can invest and innovate to drive the national economy forward.”
Shevaun Haviland, Director General of the BCC, said: “This is a tough budget for business to swallow but the Chancellor has looked to ease the pain by holding out a promise of better days ahead.
“While some protection for smaller firms is welcome, the increase in employer National Insurance Contributions will place a further cost burden on business. This, coupled with a 6.7% increase in the National Living Wage, means many firms will find it more challenging to invest and recruit in the short-term.
“Much now rests on the Government’s next steps, with the future benefits outlined by the Chancellor by no means guaranteed. A lot will be riding on the success of the Industrial and Trade strategies, and the effectiveness of devolution and public investment in infrastructure to reinvigorate regional supply chains.
“To build business confidence, it’s crucial that we now see decisive and inclusive action at pace from the Government to unlock the investment the economy sorely needs.”