Video: What Nottinghamshire business leaders think about the Autumn Statement
Nottinghamshire business leaders have described the Autumn Statement as ‘positive’ despite announcements of higher national debt and an increase in borrowing.
Chancellor of the Exchequer Philip Hammond delivered the statement in the House of Commons at 12.30pm today (Wednesday November 23) in the first financial announcement from government since Brexit.
He said that while Britain’s debt has increased, Britain would have to borrow more money (£62.8bn for this year) so that Parliament can invest.
He also said that the forecast of growth for this year (1.4%) is lower than last year’s figure (2.1%) and that government will not aim to deliver a surplus by 2020.
However Notts business leaders were encouraged by the news of more investment being put into infrastructure.
Investing into roads, railways, houses and improved broadband is welcome
Director of policy at the East Midlands Chamber Chris Hobson said: “All told, there were a lot of positives to take from that.
“It was good to hear about the national living wage being increased (from £7.20 to £7.50) and that it will be in effect in April.
“Investing into roads, railways, houses and improved broadband, with the announcement of testing 5G, is all welcomed by us as this will increase productivity in the long run.
“A concern was that there was no real profile for the East Midlands but it puts it on us to do a better job and the most important thing is that this infrastructure investment happens in the Midlands.”
Headlines from the Autumn Statement
- Britain’s debt has increased
- Britain will have to borrow more money to invest
- This year’s growth is forecast to be lower (1.4%) than last year’s (2.1%)
- The government are not aiming to deliver a surplus by 2020
- Britain will borrow £62.8bn this year with going down year by year to £59bn, £46.9bn, £21.9bn, £20.7bn and £17.2bn in 2021/22
- A new £23bn fund on infrastructure for next five years which will raise by an extra £2bn per year until 2021
- £2.3bn to be spent on 100,000 affordable homes in areas of high demand
- £1.1bn investment on improving railways
- £1bn investment into digital infrastructure – including the trial of 5G mobile
- Midlands engine strategy is to follow but the Midlands rail hub is due to go ahead
- £20m to Stanford Hall in Nottinghamshire
- Clampdown on whiplash claimants
- Large businesses will pay tax in every year they make substantial profits
- Cannot borrow in the UK for overseas purposes
- National living wage increase from £7.20 to £7.50 by April 2017
- Ban booking fees to tenants letting as soon as possible
- Fuel duty frozen
- It’s the last Autumn Statement and there will be the last Spring Budget too – with the budget being moved to Autumn and the Autumn Statement being abolished
A Notts business director is not surprised by what was announced and says that because of no landmark announcements, East Midlands has a chance ‘to make noise’ like London, the Northern Powerhouse and the West Midlands.
Richard Baker, director of Baker Communications, said: “Midlands engine won’t have very much money to come out by 2020; the true test will be what money it gets post 2020.
“There wasn’t a massive commitment to the northern powerhouse.
“There are sensible tweaks to business and railways but there were not going to be any big buck measures because of stunted growth, increased borrowing and increased debt.
“We still have an opportunity to make a noise but we have to put together an invest-able case but we have ground to make up on that.”
We are always looking at avenues for grant funding
PR marketing director of Purpose Media Jon Smart said that the announcement of 5G internet trials will help his business.
He said: “A core part of my business is web development so anything that facilitates that is got to be a good thing as business can get online.
“We welcome the announcement on research and development as we are always looking at avenues for grant funding and have struggled to get bids signed off and approved with the process still very laborious.
“It’s fine to say they will invest but if it’s still a problem and there are barriers, it will not have the desired effect.”
