East Midlands Chamber has welcomed some measures in the Chancellor’s 21st May speech but called for increased energy support for SMEs and a review of business rates to ease pressure on firms amid a tough trading climate.
Measures announced in the speech included reducing VAT to 5% on summer attractions during the school summer holiday period; a £350m Critical Chemicals Resilience Fund and £120m to help the ceramics sector.
East Midlands Chamber Director of Policy and Insight Richard Blackmore said: “While the Chancellor’s speech struck a generally positive chord, with several measures announced that will be beneficial to consumers – albeit short-term – SMEs need support packages to help with high energy costs, while business rates should also be addressed. Sectors like hospitality and manufacturing, along with smaller businesses, are disproportionately impacted by the rates as they are.
“One area of concern employers may have is around the announced 10p per mile increase in tax free mileage claims, when a vehicle is used by an employee for business purposes. Pushing it up to 55p per mile for the first 10, 000 miles could be quite a stretch for employers if that increase has not been budgeted for. That could cause employers to consider pulling back on driving for work purposes.
“Support for the ceramic sector was of several welcome announcements but to really help business and incentivise investment, implementing the measures outlined in the Chamber’s Framework for Growth – which include increasing energy support packages, reforming business rates, accelerating devolution and investment in skills – would be useful next steps.”
View East Midlands Chamber’s Framework for Growth here
