Key sectors still need help after Budget

Several calls from Greater Birmingham Chambers of Commerce’s Back Our Businesses report were answered in Chancellor Rishi Sunak’s Budget, including extensions to furlough and self-employed schemes until September and a continued business rates holiday.

But the chamber said Mr Sunak could have gone further to help the hardest-hit firms, particularly those involved in supply chains, the aviation industry and directors of limited companies.

Paul Faulkner chief executive of the GBCC, said: “It’s pleasing to see the Treasury has heeded the calls we made in our Back Our Businesses plan – in particular around the extension of the furlough scheme through to the autumn, additional support for the self-employed, further financial assistance to help businesses reopen and of course, easing the severe financial pressures are facing by extending VAT cuts and business rate relief.

“That’s not to say that the Chancellor couldn’t have gone further especially in relation to helping directors of limited companies or those firmed embedded in the supply chains of businesses that have been forced to close by the crisis.

“Coupled to this, offering greater incentives to businesses that invest in technology in the form of tax incentives should also be cautiously welcomed – especially if they provide a much needed shot in the arm to productivity levels.

“The importance of infrastructure investment was also at front and centre of today’s announcements and whilst there was much fanfare around free ports, green investment bonds and a new National Infrastructure Bank, details around support for Birmingham Airport and the wider aviation industry was sadly lacking."

Mr Faulkner said that on a sombre note, the Chancellor had spelt out the severity of the debt crisis facing the economy moving forward and had used the Budget to announce long term corporation tax rises in a bid to restore parity to the public finances – although firms with smaller profit margins were spared any sharp increase which are likely to dent business confidence and choke off any short term recovery.

“Overall, much of the Chancellor’s plans are predicated on a sharp rise in consumer spending once lockdown measures ease and we would urge the Government to learn the lessons from the past and make sure both the economic and epistemological strategies are aligned in order to allow businesses to emerge from this crisis with a semblance of confidence intact.

“Let’s not forget that so many businesses in the region are having to live through this crisis but also deal with the fallout from Brexit – something which the Chancellor chose to ignore this afternoon and we would urge those in Number 11 to constantly review the support measures in place before tightening the fiscal belt," he added.