Spring Budget 2023
Chancellor Jeremy Hunt delivered his Spring Budget to Parliament yesterday (15 March). In the 2023 Budget, the Chancellor made it a priority to tackle inflation, attributing it to ongoing economic challenges.
The highlight of the budget for businesses in Herefordshire & Worcestershire is the announcement of significant funding to the West Midlands Combined Authority (WMCA). The Deeper Devolution Deal confirmed in the Budget has secured £500m to support housing and regeneration across the region. The deal also includes up to six levelling up zones, backed by a 25-year business rate retention, with an expected total value to the region of at least £500 million. This is to target investment and encourage jobs and regeneration in areas agreed between the WMCA and Government and measures to tackle digital exclusion, including greater influence over high-speed broadband investment and a £4 million fund for devices and data to get more people online. This funding will enable local authorities and the WMCA to better plan and fund transformative investment in our region to improve prospects in the West Midlands.
Other positives that businesses can take from the budget are the government’s plans to tackle the extremely tight labour market we are facing, by announcing support for working parents around childcare costs and pension reform will hopefully bring more people back to the labour market. The expansion of the government’s ‘Skills Bootcamps’ for over 50’s will offer free training to address the current skills shortages in the labour market. This will help improve job opportunities and also upskill current employees.
The additional support for households struggling with rising energy costs is very welcome and will play an important part in reducing inflationary pressures in the short term. However, businesses will be disappointed in the lack of equivalent support for them. Businesses, especially SMEs, in our two counties have commented regularly on the financial hardship they are facing from the increases to their energy bills and without adequate support from the government, businesses face further hardship in 2023. In a recent British Chambers of Commerce survey, nearly half of the businesses that responded stated they will struggle to pay their energy bills after the government support ends in April.
The Herefordshire & Worcestershire Chamber of Commerce welcome the Chancellor’s announcement of significant funding to the West Midlands to support growth and prosperity in the region, as well as the extension of the childcare system, with the support for working parents hopefully contributing to loosening the current squeeze on the labour market as well as the help for over 50’s workers. However, the lack of support for businesses on reforming business rates to allow for investment and growth, and no announcement of support on energy bills, will inherently hold back businesses from growth due to the significant pressure firms are under from their energy bills.
As your local Chamber of Commerce, the team will continue to gather feedback from our Members on how the Spring Budget will impact their businesses and ensure their views are represented in regional and national policy frameworks. Please contact the policy department, policy@hwchamber.co.uk, with any questions or concerns your business may have.