Thames Valley Chamber of Commerce (TVCC) today welcomed several headline measures announced in the Budget but warned the package contains a number of omissions and mixed signals that risk undermining business confidence and investment across the region.
“Today’s Budget has felt like a Budget of leaks, and leaks are the last thing business needs,” said Paul Britton, Chief Executive, TVCC. “When the issue of the day is confidence, clarity and follow-through matter. Headline announcements are helpful, but the proof will be in the detail and in how quickly firms can see firm support translated into real incentives to invest and recruit.”
The commitment to free apprenticeship training for under-25s employed by SME’s is welcome and will be important for those smaller employers who struggle with upfront training and hiring costs. However, the Chamber emphasises that headlines are not enough: direct incentives and fuller funding are required, to make training truly viable for cash-strapped smaller firms. “For SME’s investing in developing staff, it is committing to the long term that commitment should be rewarded,” he adds.
Many members, especially in hospitality and other low-margin sectors, want to hire younger people but fear wage increases may make hiring and on-the-job investment harder.
Access to skills, recruitment difficulty, and inflation/tax remain top concerns for local businesses. The Chamber will monitor closely how the rise in the national living wage affects business sentiment and appetite to recruit and train younger workers.
Changes to business rates are a mixed picture and, again, the devil is in the detail. Industrial warehousing, a sector that has supported commercial property as offices consolidate, is particularly nervous about the proposed approach. There is some relief for pubs and high street businesses, but the Chamber asks whether the measures will be sufficiently impactful on the bottom line. TVCC has long advocated for greater relief for pubs and hospitality.
The range of tax announcements requires careful analysis. Some measures offer short-term relief (for example continued fuel duty relief until September 2026), but other changes, such as alterations to salary sacrifice for pensions from 2029, send mixed long-term signals. Changes that reduce incentives for electric vehicle uptake (for example lower mileage support for EVs) risk slowing market momentum at a crucial time.
Overall, the Budget sends contradictory messages on support for decarbonisation and for manufacturers and customers making the shift to electric.
“The Budget missed an opportunity to set out stronger, targeted incentives for exporters and long-term business investment” he continues. “The Chamber believes supporting, upskilling and export market development is one of the most effective ways to drive sustainable growth for local firms”.
There was a clear message that investment for devolved city regions is the focus, with areas outside of select metro areas such as the Thames Valley risking falling behind. The British Chambers of Commerce also report “we have seen UK wide business support funding of almost £1bn axed and replaced with a system of piecemeal support which favours select urban regions”.
This highlights the merit of local authorities working together across traditional boundaries within the Thames Valley, with the view to develop a Strategic Mayoral Authority – an issue of expedience for local authorities here in the Thames Valley.
