The Chancellor faced two challenges in yesterday’s Budget: delivering a clear plan for deficit reduction and setting the stage for business to lead the UK’s economic recovery.

 

We believe that the Government’s decisive moves to cut the deficit will have positive effects on business and investor confidence. Even more importantly, the Chancellor’s message that Britain is ‘open for business’ will be welcomed by companies the length and breadth of the country – and across the globe.
 
The Chancellor has redrawn the boundaries between the private and public sector but there are still many questions as to how support to Norfolk businesses will be affected.

 

We welcome the commitment for no further reduction in capital spending in this budget which will help the construction industry just recovering from the recession and will hopefully get us the A11 built at long last and move the NDR forward.

 

Broadband will remain a key lobbying issue for us to ensure that any funding from central government is spent in Norfolk.

 

The vat rise will be challenging to Norfolk consumer facing business in particular retailers and tourism that are key employment sectors for this area. In particular independent retailers will find it hard to be competitive with their as they will not be able to absorb increases prices. Tourism businesses will be competing unfairly with their European competitors who have a much lower vat threshold.

 

Although the increase in the NI threshold is to be welcomed, there is real concern that the East of England small businesses have been discriminated against through the National Insurance allowance given to businesses employing less than 10 when we are the area providing significant funding to the treasury.  It is a strange decision that at the time the government is moving away from regions they make this decision on a regional basis.  We will be challenging this decision as it books our small businesses at a disadvantage.

 

Full details of British Chamber of Commerce feedback click here