Ahead of Jeremy Hunt’s Spring Budget on Wednesday 6 March, Ross McNally, Chief Executive and Executive Chair of Hampshire Chamber of Commerce, highlights the top priorities that members demand the Chancellor address with urgency. Ross said:
“Given the huge economic shocks we have seen and the enduring challenges we face, the Chancellor must do everything possible to create a sustainable environment in which businesses can invest and grow."
“A Budget package with a focus on skills, tax incentives, business rates reform and support for infrastructure planning would go a long way to achieve that.”
Skills
“We call on Jeremy Hunt to commit to funding business-led Local Skills Improvement Plans (LSIPs) beyond the current 2025 cut-off point to at least 2028."
“In our region we have led the research and implementation of the Solent LSIP and played a key role in the Enterprise M3 LSIP. These robust, targeted initiatives are absolutely vital to our regional economy. They will increasingly equip people with essential skills for career success while enabling employers to resolve the critical skills shortages they face in their workplaces."
“In helping to coordinate the input of business and the education sector on the development of LSIPs, we know how working together can unlock valuable insights and make a real difference. Already, Hampshire’s further education sector has received millions of pounds’ worth of investment in strategic support for the skills agenda thanks to business cases put forward by our LSIPs."
“That activity must not stop now. We still need substantial investment to enhance career progression and improve employability. Mr Hunt must continue to prioritise funding for skills in our region.”
Tax
“The Budget is a prime opportunity to build on measures introduced in the last Autumn Statement to improve tax breaks and incentives for business at what remains a challenging period in the economy."
“Making permanent the system of allowances for capital investment in plant, machinery and IT, so-called full expensing, was a move welcomed by many firms. Now the Chancellor should go further and accelerate help for business."
“Specifically, we call on him to lower the VAT rate for the hospitality sector. If he does, this will boost consumer spending, help cashflow for the many SMEs who operate restaurants, pubs, hotels and leisure facilities, and support long-term investment in hospitality skills and employment."
“The sector desperately needs a lift because spending has been so constrained. While the government can argue there have been recent cuts to income tax and National Insurance for individuals, much of this has been undermined by frozen tax thresholds."
“The combination of high inflation and wage growth has brought millions of taxpayers into higher rate tax brackets. This means that for quite a while now many people have found themselves worse off compared to previous years. A VAT-cut stimulus for hospitality would make their spending more affordable and so unlock growth potential."
“As an attractive destination for overseas visitors, Hampshire would also benefit from the introduction of tax-free shopping schemes. This would help our hard-pressed retailers and hospitality providers to compete with other countries and show we are very much open for business.”
Business Rates
“In surveys over many years, members frequently tell us they have held back on investment plans as a direct result of financial pressure from business rates. And for many, their latest revaluations have left them worse off, not better."
“Business rates remain an iniquitous tax on many struggling firms, failing to take into account challenges to profitability or capacity to pay. We therefore call for long-overdue action to reform business rates and finally make it a system that incentivises rather than chokes off growth.”
Infrastructure
“Many of our members who work in homebuilding, commercial property, infrastructure development and their supply chains, consistently speak of roadblocks in the planning system. Much-needed growth is continually stymied because of limited resource within hard-pressed local planning authorities."
“We call on Mr Hunt to match fund a nationwide, industry-led, Chamber-backed scheme designed to make it easier for authorities to employ newly qualified graduates and upskill existing staff. The aim is to increase the pipeline of specialist skills and talent in the planning system."
“While this newly launched scheme may not have an immediate impact this year, it will lay the groundwork for expediting planning decisions and stimulating growth in the future. The government can make this happen more quickly by committing its support.”