The boss of Devon and Plymouth Chamber of Commerce has urged the chancellor not to fill next month’s Budget with “short-term tricks” ahead of the general election.
Stuart Elford made the comments following the news on Thursday (February 15) the UK’s economy contracted by 0.3% in the final quarter of 2023. He said the West of England needed a “sustainable, long-term economic plan” to help it recover from the last difficult few years.
Chancellor Jeremy Hunt is due to give his Budget speech to parliament on March 6 and has previously hinted at possible tax cuts. But Mr Elford said the minister must not just “appease the electorate”.
He said: “If the alarm bells about the prospect of recession weren’t already ringing, they should be now. Businesses in the South West have spent the past few years battling the quadruple threat of Brexit, the pandemic, inflation and a labour market that makes recruitment extremely difficult.
“On top of that, our region suffers not only from historic underfunding of key infrastructure – like our frail rail link – but a disproportionately high number of businesses in sectors, such as hospitality, on the front line of crisis facing our economy.
Stuart Elford, chief executive of Devon and Plymouth Chamber of Commerce “On top of that, our region suffers not only from historic underfunding of key infrastructure – like our frail rail link – but a disproportionately high number of businesses in sectors, such as hospitality, on the front line of crisis facing our economy.
“The Budget is on the horizon and we dearly hope for a sustainable, long-term economic plan that helps us begin to build again. It cannot be filled with short-term tricks that simply appease an electorate in a General Election year.”
A recent survey of South West firms by the FSB found that many companies in the region are concerned they may have to cut jobs amid the economic challenges the UK is facing. Two-thirds of small businesses in the West of England said the biggest barrier for growth for 2024 was the state of the economy.
Mr Hunt has said the Budget will “prioritise” growth in the UK. He said: “I would only cut taxes in a way that was responsible, and I certainly wouldn’t do anything that fuelled inflation just when we are starting to have some success in bringing down inflation.”
He added: “What you will see in everything I do in the Budget on March 6 is prioritising economic growth.”
Like this story? Why not sign up to get the latest finance and business news straight to your inbox.
Story Saved
You can find this story in My Bookmarks.Or by navigating to the user icon in the top right.