Exeter business community 'underwhelmed' by mini-budget

"Is that it?" asks Chamber

Exeter Chamber, the city's business body, says it is 'underwhelmed' by the government's spring financial update.

On Wednesday, the chancellor of the exchequer put on a confident performance in the House of Commons, in which he cut five pence of a litre of fuel for a year, promised an income tax cut ahead of the next general election, and raised the bar at which employees begin to pay national insurance.

But there wasn't much for businesses, other than an extra £1,000 rebate on the amount of national insurance they pay when they hire employees. There's also a cut in rates in the hospitality sector. But a rise of tax on company profits from 19 pence in the pound to 25 pence will go ahead as planned next year.

Exeter Chamber, of which Radio Exe's managing director Paul Nero is a director, isn't impressed.

Board member Patrick Tidwell says: “The spring statement from the chancellor falls short of what is needed for the business community. We are most underwhelmed by what has been proposed by Rishi Sunak.

"As a Chamber we feel disappointed that the measures are focused on individuals and personal circumstances and are not extended to supporting the business community and the increased costs pressures we are facing.

“It is, of course welcome that fuel duty is being trimmed – but five pence a litre does not go much towards the increases of forty pence or so that drivers have seen over the past two months.

If you are a business relying on delivering products and services, or travelling to meet customers, your fuel bills are increasing fast.  Additionally, the five pence a litre saving is a fraction of the VAT payment the government has received from the increase in fuel prices. It should also be noted that the reduction in fuel duty is temporary and only in place until March 2023, so we have to ask the question “is the commitment from central government going far enough?”  

We don’t think so.
“What positives can be taken from the spring statement? 
•    Retail hospitality and leisure sectors will have a 50 per cent discount in business rates up to £110,000
•    Employment allowance will be raised to £5,000 from the existing level of £3,000

"And what should have been addressed but were clearly glossed over;
•    No cancellation of NI increase which will hit businesses next month
•    No mention of proposed increase in corporation tax in 2023
•    Income tax reduced but corporation tax increased

“Mr Sunak is talking a good game about growth, and the private sector leading the way, but he has let businesses down by not giving them the tools to do the job. The economic outlook is likely to get worse before it gets better, businesses will have no choice but continue raising prices which in turn will escalate the cost-of-living crisis.”

Naturally members of the Labour Party aren't impressed either. Plymouth Sutton and Devonport MP Luke Pollard said: "The Chancellor hasn’t got a clue. He has left households and businesses in Plymouth to fend for themselves in the middle of a devastating cost of living crisis.

"Under the Conservatives, Britain is facing the highest taxes in 70 years, with the Chancellor confirming £24 billion of additional tax rises are about to hit.

"Plymouth deserves its fair share of funding, and I will continue pushing for more action to be taken to tackle the cost of living crisis."