Spring Statement: Industry Commentary

The Chancellor of the Exchequer presented her Spring Statement to Parliament on Wednesday 26 March.

Industry commentary follows:

Glenigan 

Allan Wilen, Glenigan’s Economic Director, reacts to the Spring Statement

"The Spring Statement is hardly a game-changer for construction, but no news is good news. Developers have been waiting on the sidelines, and if confidence returns, we could see a surge in project starts. Glenigan data shows that £129 billion worth of projects have secured planning approval over the past year, and many of these schemes could now break ground."

BRC 

Responding to the Spring Statement, Helen Dickinson, Chief Executive at the British Retail Consortium, said:

“The Chancellor has committed to tearing down regulatory barriers and implementing policies to grow our economy and create jobs. And yet retailers are facing tough choices as they try to find ways to address the £7bn in new costs this year as a result of increased employer NICs, higher NLW, and the new packaging tax. The impact of this will be higher prices, fewer shops and less investment in jobs.

“We welcome the Chancellor’s commitment to “drive growth in the economy” and the retail industry is keen to play its part in this mission. As the Chancellor aims to drive down the number of those who are ‘economically inactive’, there is a need for better routes back into work for those that want or need it after a period of inactivity. The retail industry provides a perfect solution. It is filled with people joining and returning to the workforce. It offers local, flexible jobs, often requiring few qualifications, and part-time jobs that allow people to find their feet, work as much or as little as they are able, and balance work with other important life commitments.

“But the costs from the Budget, and uncertainty about how the Employment Rights Bill and new business rates policy will be implemented, mean it will be much harder for retailers to keep creating these kinds of jobs. So the government should avoid unintended consequences and provide clarity about the implementation of these policies as soon as possible. A serious plan for retail growth would support the industry to invest in new jobs and keep prices down for customers.”

HTA

In response to today’s Spring Statement from the Chancellor, Rachel Reeves, the Horticultural Trades Association (HTA) Director of Public Affairs, Jennifer Pheasey, said: 

“The Chancellor’s Spring Statement offers little relief for horticulture businesses and has failed to put a spring in the step of our members across the sector. Facing fragile consumer confidence and rising costs on all fronts, from inheritance tax to border chaos to plant health fees, this is not an agenda for growth for the environmental horticulture sector. 

“Confidence and certainty are key, but with imminent new costs this April, such as National Insurance Contributions, confidence to invest remains elusive. Whilst we welcome measures to drive housebuilding and unlock planning, green spaces and gardens must be part of this, and we know these ambitions will not be immediately realised. We urge the government to prioritise decisive action to alleviate the cost burdens in the sector and commit to fair policies, so that our members can continue to contribute to the UK's environmental sustainability and overall economic wellbeing.” 

CBI

Responding to the Office of Budget Responsibility’s Spring Forecast and the Chancellor’s statement to Parliament today, Rain Newton-Smith, CEO, CBI said: 

“Weaker growth this year is a serious setback but not a surprise given the burden businesses are shouldering after the Budget. 

“The Chancellor has kept her promise to business, made at our conference, not to raise the burden further, and focus on the efficient delivery of public services. 

 “It is the right approach that the government asks of the public sector the same as it has been expecting of business since the Budget - to absorb costs through agility, modernisation and innovation.  

“Firms are already braced for a difficult few months ahead with NICs, and National Living Wage increases next week. In its current form, the Employment Rights Bill risks imposing a significant regulatory burden onto companies with damaging consequences for growth, jobs and investment. A landing-zone that commands the confidence of businesses and workers can still be found by taking the time to build a consensus that will give these reforms the footing to have a positive lasting legacy. 

“Protecting public capital spending is the right move to create the foundations for future growth but the government cannot deliver growth alone. Only the private sector can provide investment at the pace and scale we need to boost productivity, create jobs and improve living standards.  

"The government must use the Spending Review to double down on unlocking investment to secure the more positive outlook for long-term growth. Setting a world-leading goal for R&D investment, giving employers the flexibility to choose the training and qualifications that make sense for their workforce, and improved public private partnerships to fund better homes, better schools and better transport would all help deliver growth.” 

Source : Glenigan, BRC, CBI, HTA

Image : claudiodivizia / iStock / 1178304624

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