By Jamie Waller, Local Democracy Reporter
A Spring Budget with few surprises has been deemed a ‘missed opportunity’ to revitalise the economy by one Nottinghamshire businesses, while others praised the stability it provided.
Chancellor Jeremy Hunt today (March 6) announced plans to cut National Insurance by 2p, down to 8p, which he said would leave the average worker £450 better off a year.
He also raised the threshold for child benefits to £60,000, froze alcohol duty and extended a 5p cut in fuel duty.
However, local entrepreneurs questioned how much the statement would make life easier for small businesses.
They gathered to watch the announcement at an event hosted by the East Midlands Chamber at RSM UK Management’s Nottingham offices at Tollhouse Hill.
Tanya Cornford, the owner of water cooler company Water at Work, described the Budget as a “missed opportunity”.
“It’s really disappointing. We are heading into recession and there was literally nothing in there for SMEs (Small and Medium-sized Enterprises),” she said.
“We are being squeezed every way with costs and wages going up, but nothing put back in by the government.
“A new van in 2020 cost £330 a month – that’s now £680. If the government isn’t careful, many small businesses won’t be around in five or ten years.”
She added that a National Insurance cut “didn’t work” when it was previously unveiled in the Autumn Statement, and was a “sweetener” for the coming General Election.
Craig Brothers, owner of design agency Affari and Six Degrees Associates and a Chamber of Commerce board member, agreed the Budget was “underwhelming”.
“We anticipated the National Insurance cut, but there nothing else of great excitement,” he said.
“The cut will benefit staff members though. A big problem we have in the local economy is filling roles, and there was also quite a bit to help with that through childcare support.
“We are coming into spring and there are sprouts of good feeling, but we need more support.”
Corrina Hemburg, Managing Director at Access Training, said: “The Chancellor talks about a high wage, high skill economy, so I was disappointed not to hear any support for training.”
Some viewed the lack of surprises as a sign that a General Election could on the horizon.
Richard Blackmore, of pro-business group the East Midlands Chamber, said the Chancellor didn’t “pull any huge rabbits out of the hat”, but the rise in VAT threshold for SMEs to £90,000 was a “step in the right direction.”
He added: “Confidence in the region continues to grow. What businesses want now is a General Election for long-term stability.”
Ross Ryan, Business Development Managing at Manufacturing Technology Centre, described the announcements as a “budget for stability.”
“There were no great surprises that would upset the market, and will encourage investing for the long-term.”
