Business bosses react to chancellor's budget

Jeremy Hunt delivered the budget, likely to be the last one before the general election, on Wednesday

Business leaders across the West Midlands have been sharing their reaction to the announcements made in Wednesday's budget.

There was praise for Chancellor Jeremy Hunt's measures to help people in financial difficulty, but criticism cuts to National Insurance did not go far enough.

There was a warm reception for the news fuel duty would not be increasing, but disappointment that the budget did not include many measures to promote business growth.

Meanwhile, there was a mixed review for the government's decision to freeze alcohol duty.

Julie White, owner of Coventry-based D-Drill, welcomed the announcement that fuel duty remains unchanged

Julie White, owner of Coventry-based concrete cutting and controlled demolition company D-Drill, welcomed the decision to freeze the cost of fuel duty.

“For us, it’s getting costs under control,” she said.

“If we know for definite there is a freeze then we can plan and we know how much it will cost next month and the month after.

“The government needs to watch that it gets passed on to us at the pumps.”

Ms White said her business was facing a number of increasing costs but said the fuel price-freeze as one of the biggest ways to help small businesses.

She also praised the cut in National Insurance cut but said more should be done to help firms recruit and train apprentices.

“There was very little for the construction industry directly – but additional funding across the regions should result in more construction projects," Ms White continued.

“For every pound spent in the construction industry, three pounds goes into the wider economy.”

Richard Smith, owner of The Wine School of Cheshire, said the decision to increase the cost of alcohol last August was still being felt

Richard Smith, owner of The Wine School of Cheshire, said the increase in alcohol duty last year was a factor for inflation remaining high.

“The cost of alcohol has gone up 20% since August last year," he said.

“If it was lower people would perhaps have that second glass or second bottle so they would spend more in a venue they’re in or a shop – and that puts more into the exchequer through VAT etc.”

Mr Smith did welcome the fact that the alcohol price had not gone up further.

“There are a lot more complications to come because it’s going to be based in the future on percentage of alcohol,” he said.

The last year had produced the toughest trading conditions of recent times, including those during the pandemic, he explained.

“If you spend £5 on a bottle of wine you actually get 32 pence of wine in it," he said.

“The majority of the balance goes to the exchequer – there’s a bit for transport, and a small profit for the retailer.

“A huge chunk of that is VAT as well as excise, because we get VAT on the whole product, which includes excise duty, just like fuel is.”

He said the industry would welcome a cut in VAT on hospitality, but appreciated the difficult economic circumstances the country is facing.

Corin Crane, chief executive of Coventry and Warwickshire Chamber of Commerce, said there was little announced that would help firms involved in manufacture and construction

Corin Crane, chief executive of Coventry and Warwickshire Chamber of Commerce, held a budget roundtable event on Wednesday with a cross section of businesses in the region.

He said there was strong interest in the chancellor’s announcement of extra funding for culture in Coventry, and for devolved powers for Warwickshire, but little announced for businesses.

He said: “The cut in national insurance will provide a boost to staff who are still feeling the effects of the cost of living crisis but that wasn’t matched by the same kind of help for companies.

“There was very little for our manufacturers and construction businesses, who are still feeling the pinch from the rising costs that they faced over recent years.

“It was a similar story for hospitality.”

He added: “We all wanted to see a budget that would support that growth and I’m not sure that’s what we have been given.”