Responding to the Chancellor’s Spending Review and Autumn Statement, Stewart Dunn, Hampshire Chamber Chief Executive, said:
“Better than expected growth forecasts gave more room for manoeuvre, so the ‘builder’ Chancellor was able to abandon his proposed tax credit cuts and many of the seismic departmental spending reductions people feared.
“Businesses will welcome the focus on house building and infrastructure including the programme of road repairs which will of course underpin much economic activity.
“We also applaud increased investment in science and technology which will benefit innovation and create more high-tech job opportunities in Hampshire.
“On tackling skills shortages, we wanted to see more clarity on the new Apprenticeship Levy due to come in next year as a way of funding three million apprenticeship places. The Chancellor set this at 0.5% of an employer’s wage bill above £3 million, with a £15,000 allowance for those taking part. Less than two per cent of employers are expected to have to pay this ‘payroll tax’ but many smaller and medium sized businesses will nevertheless wonder if they are going to be included. More detail is needed otherwise firms will put training and investment budgets on hold until the full impact of the levy is clear. We have long called for measures to bridge skills gaps in many industries but we remain sceptical that the Chancellor has done enough to instil confidence and promote quality apprenticeships.
“On other business taxes, there were further reductions in Corporation Tax which is welcome but we were again disappointed at the lack of movement on reform of business rates. Giving local authorities more control over collection and spending does not solve the issue of correcting fairness in what remains an iniquitous tax.”
“We welcome the announcement of funding support for the D-Day Museum in Portsmouth and plans for a new Enterprise Zone in East Hampshire.”
