The budget receives a mixed response from the Chamber

Friday, 26th March 2010

Chancellor Alistair Darling’s Budget, announced yesterday, received a mixed response from the Thames Valley Chamber of Commerce Group, which is pleased that some good measures were introduced to help businesses, but is concerned that some schemes, such as the increase in National Minimum Wage, will have an adverse effect on the UK’s economic recovery.

Responding to the Budget announcement Claire Prosser, policy executive of the Chamber, said: “We are pleased that the Chancellor has recognised the need to place business at the core of this Budget. Doubling the annual investment allowance, help with business rates, and allowing entrepreneurs to keep more of their gains is especially welcome.

“We are, however, disappointed with the 2.2% increase in the National Minimum Wage, almost double that of last year’s increase. At a time when many businesses are finding it difficult to retain their staff, this increase could restrict some employers from taking on new staff.

“Although the Chancellor’s GDP forecasts for 2010 are realistic, the official forecasts predicting fast growth in 2011 and beyond are too optimistic. It is also disconcerting that Darling has not set out a clear plan for the reduction in the budget deficit, which will continue to threaten business confidence and investment. More should have been done to persuade the markets that the health of our public finances will be restored within a realistic timescale.”

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About the Thames Valley Chamber of Commerce Group
The Thames Valley Chamber of Commerce Group works with businesses across Berkshire, Buckinghamshire, Oxfordshire and Wiltshire to help them achieve their full business potential through: meeting new customers; cutting costs; developing their workforce; influencing local decision makers; and arming them with business intelligence. Membership is available to all businesses.

For all press enquiries, please contact Marianne Creaney on 01753 870 518, email: mariannecreaney@thamesvalleychamber.co.uk

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