The Chancellor should use the up-coming Budget to do more to stimulate growth and boost business, a Midlands expert has urged.
Johnathan Dudley, Midlands Managing Partner at national audit, tax and advisory firm Crowe Clark Whitehill, said the Chancellor George Osborne was facing a dilemma.
“He has made it very clear that he will not divert from his austerity programme and the need to get borrowing and debt under control.
“However, he is under considerable pressure to pull the economy out of its ‘stop-start’ mode of recession- one quarter and slow growth the next. Indeed his own backbenchers, conscious of the struggles facing so many families, have been urging him to cut taxes and lower the cost of living.
“He faces a delicate balancing act and difficult compromises.”
He went on: “The Midlands will be looking for further encouragement for the manufacturing sector.”
“Industry in the region has been holding its own, largely thanks to the success of Jaguar Land Rover, stabilisation of Europe’s sovereign debt crisis and the stimulus to exports represented by the weak pound.”
“It would be good to see further moves to boost business by stimulating business confidence to assure a sustained period of commercial stability.”
Mr Dudley that said fuel prices were amongst the greatest concerns.
“Diesel and petrol costs are once again on the increase and threatening to hit unsustainable levels – the flip side of the pound/dollar relationship.”
“Such charges go straight through to the bottom line, pushing up overheads. If we want to get people back into employment then this is a particular drag on the ability of business to create jobs. Given that tax is such a huge proportion of the cost of filling up, some adjustments here would prove to be popular.”
Crowe Clark Whitehill is running a post Budget breakfast seminar on Friday 22 March, at West Bromwich Albion Football Club. which Mr Dudley will be chairing.