Tax rises in the Budget aimed at companies could slow much-needed economic growth and undermine investment decisions, the region’s largest business organisation fears.
Business West, the organisation behind Bath Chamber of Commerce, said it recognised that the Chancellor faced a tight fiscal position and had to make hard decisions.
But it added that it was “really concerned” by measures increasing the tax burden on businesses would have an impact on economic expansion and on firms’ own growth plans.
The organisation also said the South West appeared to again be missing out when it came to government spending plans – with no mention of any new funding directed at the region.
Business West managing director Phil Smith, pictured, said: “Through our Quarterly Economic Survey, businesses have told us that rising taxes are an increasing worry.
“Employer NIC (National Insurance contributions) increases will leave companies with less money to invest in their staff and business’s success.”
He said measures for small businesses, such as changes to the employment allowances and business rate relief, would be welcomed by the region’s important retail, hospitality and leisure sectors.
“However, such fine-margin industries, where employment costs form a large share of their cost base, will be disproportionately impacted by these extra employee contributions,” he added.
“Our region has a strong economy that plays a key role in the UK’s overall economic success.”
He said Business West welcomed the government’s commitment to ‘invest, invest, invest’ in the country through its seven key pillars of economic growth, particularly commitment to support the South West’s vital industries such as aerospace, advanced manufacturing, creative industries and clean energy.
But it was regretful that the South West seemed to have been missed out from future spending plans.
“Hence now more than ever it will be important for our devolved local and regional leaders to make the case for the government and private sector to invest in our region and its economic growth,” he added.
