CUMBRIA Chamber of Commerce is calling on Chancellor Rishi Sunak to use the Budget to instil confidence, boost skills and productivity, and stimulate growth.
It warns that the Coronavirus outbreak has slowed growth and risks tipping the economy into recession.
Chamber Chief Executive Rob Johnston said: “The British Chambers of Commerce had forecast that growth would slow to 1% this year – but that was before Coronavirus hit.
“We need the Chancellor to act decisively. It’s time for the Government to make good on its election pledges to invest in infrastructure to address the north-south divide.”
Cumbria and the other 52 Chambers of Commerce across the UK have today tabled proposals to the Chancellor ahead of the Budget on March 11. They include:
- A moratorium on measures that increase businesses’ costs for the life of this Parliament;
- Reform of business rates;
- A two-year extension to the £1m Annual Investment Allowance to incentivise investment;
- Support for customs intermediaries to help businesses adapt to the end of the Brexit transition period;
- A substantial increase in infrastructure investment;
- A commitment to a clear UK energy strategy;
- Increase the flexibility of the Apprenticeship Levy and reinstate £1.5bn of funding cut when the levy started.
Rob said: “Investment in skills and in road, rail and digital infrastructure are key to boosting productivity and growth in the North. HS2 is a start but it mustn’t stop there.
“The Green Book rules on infrastructure spending disadvantage areas like Cumbria and that has to change.
“We pressed for the Chambers’ demands to include clarity on energy policy – in particular around the funding formula for nuclear new build – because that’s a pre-requisite to unlocking investment in Moorside and other UK nuclear sites.”
He added: “The biggest challenge faced by businesses is spiralling costs. Many businesses are likely to face even greater costs when the Brexit transition ends.
“That’s why we’re calling for a moratorium on measures that increase businesses’ costs for five years, the only exception being evidence-based changes to the National Living Wage.
“A priority is reducing the burden of business rates, which are accelerating the decline of town and city centres.
“This Budget will be an acid test of whether the Government is listening to businesses and whether it has the political will to carry through on its rhetoric about levelling-up, raising productivity and boosting skills.”
