Harrogate business group reacts to Spring Budget with 'disappointment'

Chancellor Jeremy Hunt's announcements today included a forecast that, though economy will shrink by 0.2% in 2023, it will avoid a "technical recession."

As well as predicting the UK's inflation rate would fall to 2.9% by the end of this year, new measures to ease the cost of living crisis and boost business were also announced, including:

Government subsidies limiting household energy bills to £2,500 a year are to be extended for three months until the end of June.

Thirty hours of free childcare for working parents in England expanded to cover one and two-year-olds, to be rolled out in stages from April 2024 to encourage people into work.

Alcohol taxes to rise in line with inflation from August but alcohol taxes in pubs to be 11p in the pound lower than the rate in supermarkets.

Dan Siddle, chair of Harrogate Business Improvement District (BID), said more was needed to ease the problems facing businesses.

"While we fully support the Energy Price Guarantees to support the still back-breaking costs; and duty freezes on fuel and alcohol; we feel that businesses in the BID will have wanted and need more.

"The expansion of free childcare and reforms to assist getting more people in the workplace are not enough to combat the immediate need to short staffing that businesses are suffering.

"We are also very disappointed to not hear the ever-promised support to the high street – infrastructure improvements, allowing more local ownership on vacant units sat empty, business rates reforms and much more - these all need to be explored and then delivered.

"If the Government are serious about rejuvenating the many high streets around the UK they need to listen to local voices.

"We at Harrogate BID will continue to support our members with footfall increasing events in a welcome, clean, vibrant environment whilst lobbying Government, locally and nationally, for real change within the local economy."

Meanwhile, the British Chambers of Commerce reacted to the Spring Budget by saying, though some of the Chancellor’s measures were welcome steps forwards, they would not change the overall playing field.

“The Chancellor has acted to address the unfilled jobs blighting our economy. It is especially good to see the help on childcare and for over 50s workers,” said Shevaun Haviland, BCC’s Director General.

"But almost half of businesses have told us they will struggle to pay their energy bills from April, and they cannot invest when they are fighting to survive.

"There is little in today’s announcement that will provide comfort to these firms.

“The Government also failed to reform business rates which we have repeatedly called for. If the UK’s innovative growth industries are to remain competitive on the world stage, then Government must shift the dial further on investment, both within the UK and from overseas.”

Other new measures in the Spring Budget included:

The lifetime allowance limit on pensions to be removed and the pensions annual tax-free allowance to rise to £60,000.

Fuel duty to be frozen for another year.

The introduction of 12 new investment zones.

Payments of £600 for people becoming childminders.

Universal Credit reforms to be designed to help more disabled people into work.