What’s in it for us? Black Country businesses deflated by Budget

University of Wolverhampton economist Dr Ian Jackson told a Budget review at Wolverhampton Business Solutions Centre that it had been a “missed opportunity to bolster the local economy”.

Dr Jackson said it lacked support for skills training and education and was low on local policy.

Meanwhile Tracey Jackson, a director at £3 million turnover firm Howells Patent Glazing at Cradley Heath, said she felt ‘disappointed’ that the Budget had not got close to doing enough for businesses like hers which lay between the micro and medium-sized firms.

She was particularly deflated at the lack of help on research and development support or relief on corporation tax.

“We also needed something to help small companies over pensions which are crippling for us. Bigger companies seem to cope better,” she added.

'Negligible impact'

Rob Gunn, a tax partner at Oldbury-based Crowe, said it had delivered “negligible impact” but said that this was probably not a bad thing with everything that was going on around Brexit.

One area he said that could help Black Country business was the lifting of the annual investment allowance from £200,000 to £1 million.

Mr Gunn said he would be interested to see the detail of what was being done to support the ‘Midlands Engine’ which had not been spelled out by the Chancellor in his “quiet Budget.”

• IN DEPTH: Hammond unveils tax cuts as he hails ‘end of austerity’

• MORE: Budget not intended to pave way for election, says Hammond

He said he would have liked to see something done to help firms with exporting.

Paul Kalinauckas, chief executive of Wolverhampton-based BCRS Business Loans agreed that the Budget would have little impact, but said that the reduction in business rates for small shops was a positive step.

He also welcomed the extension of the Government’s start-up loans scheme to 2021 for minor businesses that can’t get bank loans and said BCRS was likely to get back in involvement in delivering the scheme.

But he said that failing to provide tax relief to help small businesses improve their digital capacity was a missed trick.

Quite politicised

Black Country Chamber of Commerce chief executive Corin Crane, who chaired the panel of experts, also saw the increase in annual investment allowance as good news and the business rates reduction as “generally positive” but said: “It felt like they are keeping their heads down and didn’t want to make any big announcements this year.”

Mr Crane described the Budget as “quite politicised” and looking to keep business on side by delivering some of the things the British Chambers of Commerce had been campaigning for.

Dr Jackson also warned that very difficult economic times still lay ahead but welcomed the forecast reduction in the Budget deficit.

“This has been the worst peace time recession since the1929 Wall Street Crash. It has gone on longer and deeper than anyone forecast back in 2007-2008 and Brexit is just around the corner,” he explained.

Where's the West Midlands?

Great Birmingham Chambers of Commerce said that while there were plenty of positive announcements for businesses, but, there was no mention of Greater Birmingham or the West Midlands.

Henrietta Brealey, policy and strategic relations director at GBCC, said: “While devolved nations, the Northern Powerhouse and beyond received a number of nods, the news for the West Midlands was buried in the Budget Red Book.

"It is clear from the announcements that there is still work to be done on promoting further devolution to English regions which still lag behind devolved nations and London on funding.”

Raj Kandola, senior policy adviser at the GBCC, said that on infrastructure the chamber welcomed the commitment to improving the transport networks across the full spectrum of the Strategic Road Network, Major Road Network and for local roads.

However he said he would have liked to see the Chancellor reiterate his concrete support for HS2.

Linda Marston-Weston, Ernst and Young’s head of tax in the Midlands, said: “With so many small measures, this can be seen as clearing up before the Spring Budget.”

Carolyn Fairbairn, Confederation of British Industry Director-General, said: “This was a rock-solid budget, bringing more treats than tricks for business.

“It recognises the enormous contribution enterprise has made to balancing the UK’s books through jobs, pay and tax and responds to many of the recommendations that firms have made.

"But while the Chancellor has reduced some of biggest barriers to growth, he has missed some opportunities.”