Budget reaction - South Wales Chamber of Commerce

 
“Our initial reaction to today’s Budget is that it didn’t go far enough to instil confidence among the UK’s battered businesses and anxious consumers.

 
“The growth forecasts of 1.25% in 2010 and 3.5% per annum from 2011 are optimistic at best, and the assertion that the budget deficit will halve in four years is little more than wishful thinking – something in the order of ten years would be more likely. But, among the rhetoric, there are some very encouraging measures for businesses.

 
“For example, extending the period in which loss-making firms can redeem taxes on profits represents an opportunity for viable, economically and socially important businesses to improve their cash flow, and is a welcome step. The focus on skills retention and training is critically important to not only managing the Government’s debts, but in ensuring that the future is a far more prosperous one for school leavers and the long term unemployed alike. There are question marks over how some of these measures will be rolled-out, and this will need to be communicated effectively to ensure that, on a regional and national level, the benefits of these schemes will be felt.

 
“However, when one considers the massive support that the banks have received to stabilise the financial sector, it beggars belief that there wasn’t a more aggressive focus on supporting the private sector – not least the manufacturing industry as a whole, which, thanks to the weak pound and increasing opportunities in global markets, are well placed to boost the UK economy. The proposed two pence increase on fuel duty is also an unwelcome expense for businesses and commuters, particularly as prices at the pumps have began to creep upwards again.

 
“The Budget announcement was short, as was to be expected, but the road to economic recovery for the UK is long, and the measures outlined today must be followed up with swift and forceful action to rekindle confidence and generate real results.”

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