'Very little good news' - Shropshire business reacts to Chancellor's Spring Statement

The announcement came shortly before an Office for Budgetary Responsibility(OBR) report showed UK growth was set to half from predicted levels of around 2%.

But the OBR has upgraded its predictions for growth for the next four years, with inflation expected to hit 2% government target from 2027.

As the region's businesses reacted to the announcement, Shropshire Chamber of Commerce said there was "very little good news" emerging from the Chancellor’s statement.

“Employers hold the key to unlocking the economic growth that the Government is seeking – but they can’t do this if they feel they are being hammered with extra costs,” said chief executive Ruth Ross.

“The government must focus on reducing the cost pressures for businesses, boosting investment and exports. Firms are realistic, but they are also hurting.”

“There was nothing in this afternoon’s statement from the Chancellor to recognise or help to alleviate the cost pressures that these changes are going to place on Shropshire businesses over the coming months.”

She added: “With ambitious house-building targets planned across Shropshire and Telford & Wrekin, it was good to hear about significant investment to help train more construction workers. I hope our county will see an appropriate chunk of this money.

“However, we would have liked to hear plans for a much wider tax roadmap, which included national insurance and business rates, giving firms a clearer idea of when costs will be lowered."

Wayne Carter, managing director at Telford based Fabweld Steel Products, said the Chancellor had not offered enough to businesses facing a raft of rising costs as a result of policy changes next month.

"Today’s Spring Statement failed to address the reality facing businesses at the moment – rising costs for energy, wages and NICs from next month while asking us to invest in innovation and growth," he said.

“We'd welcome future measures that recognise and encourage SMEs making these important transitions, ensuring British manufacturers can continue developing environmentally responsible solutions while maintaining competitiveness in global markets."

Meanwhile Hortonwood construction firm McPhillips welcomed a £600million funding boost for the construction sector – but warned the Spring Statement showed the fragility of the overall economy.

McPhillips managing director Paul Inions said today’s statement painted a gloomy picture of the state of the nation’s finances, with spending cuts following the tax and borrowing rises announced in the October Budget.

“Having ruled out tax rises ahead of today’s statement, the Chancellor left herself with little option but to cut public spending if she wanted to stay within her own fiscal rules," he said.

“There is only one way out of her current predicament and that is to do everything she can to help the private sector start to grow. Unfortunately, the rise in employer’s National Insurance contributions which comes into effect next month and changes to employment laws do nothing to help.

“However, the extra £600million of funding to train tens of thousands more skilled construction workers over the next four years is certainly welcomed. If it can deliver on the Chancellor’s promise to train up to 60,000 engineers, bricklayers, electricians and carpenters by 2029 then it will be a big step forward.”

Paul added: “McPhillips runs its own training centre and we know that investment in skills at entry level pays huge dividends further down the line.

“We certainly need this sort of national investment if we are to speed up work on the UK’s infrastructure and build the 1.5million homes the Government has promised in the next five years.”