North West leaders and prominent business figures have had their say on the Budget which has been laid out by Chancellor Rishi Sunak in the House of Commons.
Mr Sunak outlined a raft of measures including a corporation tax hike, new freeport locations and the Treasury's move north.
He announced a flurry of new measures including the Liverpool City Region becoming a freeports and £1bn in funding for 45 new Town Deals.
Greater Manchester Mayor Andy Burnham branded it a "Polo Budget - in some ways refreshing, but full of holes".
He welcomed the extension of the furlough scheme, VAT freeze and extra grants for businesses.
However, Mayor Burnham criticised the Chancellor for not mentioning the NHS or social care in the Budget, saying it was an "insult" to those who have working throughout the pandemic and that they "deserve greater recognition".
He also reiterated his call for the Government to look at self isolation pay, calling the current provision insufficient and criticised the Government for not mentioning the Northern Powerhouse in the Budget.
Mayor Burnham did praise Rochdale's inclusion in the 45 new Town Deals and Salford being linked to the Liverpool City Region's new freeport.
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Sacha Lord, night time economy adviser for Greater Manchester and the co-founder of the Parklife Festival, said: "I am very pleased with the Chancellor's announcements today which will go a huge way to helping operators get back on their feet.
"The night time and hospitality sectors have been crying out for support, and today we can breathe a sigh of relief that we have been acknowledged.
"The surprise extension to furlough to September is a welcome move, acknowledging that for the majority of operators, recovery will be a slow and steady process.
"This extension will allow businesses to feel more financially settled before having to bring all staff back or being forced into making redundancies, and I know this measure will save hundreds of thousands of jobs across the sector.
"The business rate and hospitality VAT cuts will be a lifeline to many. We have lost a huge number of venues in the past 12 months, but with these measures in place we can now look forward and support those who have desperately hung on.
"There will be many business owners waking up tomorrow with renewed hope for the future of their business and their employees."
Damian Waters, CBI North West Director, said the Budget "succeeds strongly" in protecting the economy and kickstarting recovery, adding that it leaves open the question of 海角视频 competitiveness long term.
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He said: “The Chancellor has gone above and beyond to protect 海角视频 businesses and people’s livelihoods through the crisis and get firms spending.
“Firms across the North West will be relieved to receive support to finish the job and get through the coming months. The Budget also has a clear eye to the future; to ensure finances are sustainable, while building confidence and investment in a lasting recovery.
“Innovative ideas to boost the 海角视频 economy and strengthen our international trading links are vital to accelerating recovery. Awarding freeport status to Liverpool City Region should bring benefits to local businesses and help the wider regional economy. With levelling-up a crucial ambition for government and business, firms will look forward to working with local stakeholders to make this a step in the right direction.
BusinessLive's Budget 2021 coverage
“The Chancellor has taken a welcome, broad view on how to stimulate growth from the new Infrastructure Bank, to Help to Grow and incentives to take on apprentices.
“The super deduction should be a real catalyst for firms to greenlight investment decisions. The boldness of the Chancellor on this measure is to be admired.
“But moving Corporation Tax to 25% in one leap will cause a sharp intake of breath for many North West businesses and sends a worrying signal to those planning to invest in the 海角视频.
“The government must now have a laser-like focus on the 海角视频’s competitive position in the round, including fundamental reform of the unfair Business Rates system. The 海角视频 must remain attractive for every type of business, from the innovation, high-growth 海角视频 homegrown firm to the global firms investing in the 海角视频. We look forward to working with the government to achieve this.”
Steve Rotheram, Metro Mayor of the Liverpool City Region, said: “It’s welcome that the Chancellor took steps to protect the economy in the short-term by extending the furlough scheme and much needed support for sectors that have been hit hardest by the pandemic.
“In my view, the measures announced today fall short of the comprehensive long-term recovery plan and investment in our public services like the NHS, schools and local councils, which regions like ours need if the government is to achieve its stated aim of levelling up.
“I was equally disappointed that the Chancellor had almost nothing to say about devolving more power and funding away from Whitehall, when areas like ours could be taking steps now to boost the economic recovery, had we been given more backing by government.
“My heart goes out to the 3m people excluded from government support since last March, who were hoping for something today to address their plight. They deserved better.
“Overall, I think today was a missed opportunity for the government to set out a clear long-term vision for our economic recovery in a post-pandemic, post-Brexit world."
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Ian Watson, chief executive of Lancashire-based Hotter Shoes, said: "Like all retailers, I am pleased with the announcements made within the Chancellor's Budget today.
"The new grant scheme will have sadly come too late and won't touch the sides of the full financial impact of Covid on retailers, but for those who have been able to cling on, these small but necessary lifelines are a small glimmer of light at the end of this long, difficult tunnel.
"At Hotter, our online sales have been particularly strong during the pandemic, but like others we were forced to close a significant majority of our stores to keep ourselves financially viable.
"We have entered 2021 in a very strong position, and while we personally anticipate strong sales in our remaining 23 stores once we can reopen, we must also recognise that the general public have changed shopping preferences, and footfall rates across 海角视频 high streets may take many months to return to pre-pandemic levels.
"As such, I'm pleased to see ongoing furlough and business rate support over the year which will help retailers recover, safe in the knowledge they can rebuild their financial stability steadily without sudden implications or the tough choice to make redundancies immediately upon reopening."
Rachel Engwell, partner and Northern head of tax for Grant Thornton, said: "The extension of the furlough scheme and business rates holiday are all vital steps which North West businesses have been calling for; particularly those working in retail, leisure and the other sectors so disproportionately affected by lockdown restrictions.
"The £5bn boost to help these businesses to turn the lights on again and begin trading in trading conditions which may be very different, will be welcomed too.
"This Budget was always going to be dominated by two areas: measures to support the economy as, despite vaccines rollout continuing apace, we are far from out of the woods; and the difficult decisions the Chancellor will have to take to balance record public spending, the likes of which has not been seen in peacetime.
"Rishi Suank promised he would 'level' with the country about the need to pay for this. In the North West we have been waiting on pledges to level-up which so far have failed to transpire.
"The recent 40% cut to Transport for the North placed the manifesto pledge to improve infrastructure across the region into real question.
"Businesses will therefore welcome the announcement of Liverpool City Region’s Freeport.
"The tax incentives and streamlined planning can fuel a maritime renaissance for the city and will be universally welcomed by entrepreneurial mid-market businesses.
"On the other side of the Pennines, Darlington and Leeds will benefit from the Treasury North and the Infrastructure Bank respectively.
"But the Chancellor has offered little to demonstrate Whitehall’s commitment to Manchester’s place in this Northern revival."
Jane Parry, managing partner of Blackburn-headquartered PM+M, said: " The biggest challenge for the Chancellor over the coming weeks and months is to manage expectations that the Covid debt needs to be repaid but without choking confidence, which will be no mean feat.
"Balancing being supportive but appearing tough on debt is a tricky balance and today’s Budget threw up no real surprises.
"The announcement that the furlough scheme will be extended until the end of September in an attempt to protect jobs as the 海角视频’s fragile economy emerges from the ashes of the Covid-19 emergency is hugely welcome.
"It gives businesses and workers across the country clarity for the three months after the government expects that all restrictions on our daily lives will be removed in June.
"The Treasury has had to think on its feet throughout the pandemic, with various extensions on support being announced, but hopefully this timetable is fixed and we all now have an end date to work to."
Robert White, the chief executive at law firm Brabners, which has offices in Manchester, Liverpool and Preston, said: "The levelling up agenda goes way beyond investing to return the regional economy back to its pre-pandemic levels, meaning the government must inevitably go further in the long-term to supercharge growth.
"However, today’s announcements importantly reflect the Treasury’s willingness to spend, through the establishment of the new Infrastructure Bank, in particular, which is likely to help boost critical regeneration in Northern towns and cities.
"If the North is truly to grasp the opportunities available to us and move beyond a budget-to-budget recovery, the region should continue to focus on its strength in areas including technology and green energy.
"While there will be some concern among growth-focused firms regarding today’s increase in corporation tax, the opportunities provided by the broader levelling up agenda and the focus on 'building back better' should far-outstrip the impact of today’s tax rise over the course of the next few years, and beyond."
Liam Manton – co-founder of Didsbury Gin, welcomed the news Mr Sunak will scrap the duty increase for alcohol.
He said: "Since 2015, the number of distilleries in the 海角视频 have grown to record numbers and brands like ours supports hundreds of jobs and contributes billions to the 海角视频 economy each year.
"Any increase in alcohol or spirits duty would have stifled innovation and growth for many companies in our iconic industry. We’re pleased that the Chancellor is backing both the spirits and hospitality industry to ensure we can continue to innovate, drive growth and firmly put us all on the road to recovery."
Adam Jones, founder of Tattu Restaurants, which has branches in Manchester, Leeds, Birmingham and Edinburgh, said: “Today’s Budget announcements have provided the first positive steps forward to allow us to focus on the road to reopening, working towards returning to levels of trading that we were operating at before the pandemic struck.
“While the extension on business rates relief until June is welcomed, I would have liked to have seen the Chancellor echo the decisions made in Scotland to extend rates relief in full for 12 months.
"This would provide many hospitality businesses that cannot reopen until May 17 with a little more breathing space and an opportunity to build back lost revenues and relieve some of the crippling financial pressure that we’ve experienced being closed for 10 out of the last 14 months.
"Continuing the VAT reduction is absolutely the right decision for businesses to be able to properly benefit from its intended purpose, and will undoubtedly have a positive impact for many operators.
“The extension of furlough is a step in the right direction and gives us some flexibility to bring our teams back to work to prepare for reopening. However we’re still incurring costs of around £70,000 per month while we remain closed. It was disappointing to see no further mention of the Furlough Retention Bonus, which was a level of support that many businesses had been relying on to offset some of the costs incurred by the Furlough Scheme.
“In addition to the financial measures announced today, the government must now turn its support to building back consumer confidence to return to our towns and city centres and encourage public spending to ensure the survival of the place-based businesses from hospitality and leisure through to arts, culture and entertainment, that we’ve all missed so much.”
Louise Hebborn, partner and head of the commercial litigation department at Stephensons, said: “Extending business rates relief and the offer of discounted rates thereafter is a positive and welcome step forward. It helps provide some much-needed certainty and breathing room for businesses struggling to manage the pandemic and its ongoing impact.
“Much of the support for businesses previously announced by the Government has been drip-fed, leaving very little time to prepare and plan. As the business community look towards the next financial year, including whether to renew leases on commercial properties, the Chancellor’s Budget will give them a firmer footing on which to make better, more informed decisions on the future of their business.”
Steven Mason, insolvency practitioner and senior manager at Manchester-based Inquesta, said: “Rishi Sunak delivered another creative Budget, unveiling a plan focusing firstly on ensuring the 海角视频 economy survives the remaining months of the pandemic.
“Few will argue against the extension of the furlough scheme until the end of September, increased support for the self-employed and funds being made available to help high street firms reopen.
“There was, however still no support to enable directors of limited companies to use dividends towards furlough payments.
“Sunak did not, however, attempt to gloss over the effect his actions have had on 海角视频 borrowing, which is at unprecedented levels.
“The damage to the economy done by coronavirus had been “acute” and the Chancellor acknowledged that it would only be through tax increases that the government could begin to repair the public finances.
“However, the measures he announced were equally creative. While the headline rate of corporation tax will go up from 19 per cent to 25 per cent, this will not be until 2023, with exemptions built in for smaller businesses making profits of less than £250,000.
“In all, it appears a reasonable move, with the Chancellor vowing that only 10 per cent of companies will be paying the new top rate.
“By not putting up taxes too early, the Chancellor has given businesses some breathing space to allow a return to normal trading before the new regulations come in.”
Paul Cherpeau, chief executive of Liverpool Chamber of Commerce, said the Budget was "good news in the short term", but that Government promises must be kept.
He said: "We stated that a budget for stimulating growth was essential. The commitment for the Super Deduction investment tax relief suggests that recapitalisation of businesses and an infrastructure-based recovery is at the core of the economic strategy.
"The decision to raise corporation tax will be concerning to 海角视频 businesses, coming on top of what has been a really challenging year on so many levels. Our fear is that it will inhibit business growth and slow down our economic recovery when it is introduced in 2023. Ensuring such a policy is reviewed to be commensurate with the state of the economy is important to a sustainable recovery beyond the immediate short term. As we emerge from the pandemic the government must look at using a range fiscal stimulus measures to help unlock private investment and encourage innovation.
"The news that Liverpool city region’s bid to be a Freeport has been successful is very much welcomed by all partners and provides the opportunities to really capitalise on our strengths, attracting inward investment to our region and building upon our net zero credentials and future opportunities. Locally businesses must be at the heart of the development of the Freeport and we look forward to working with partners to make sure they have a voice.
"The overall verdict? Good news in the short term for many businesses affected by Covid-19 but we must also keep our focus on the longer term and make sure that the government delivers on their commitments to level up the economy.”
John Rozenbroek, COO at Altrincham-based Capify, highlighted that while details are still pending, it seems unlikely businesses that have used the Bounce Back or CBIL schemes will be eligible for the Recovery Loans Scheme.
He told us: "The Chancellor's Spring Budget was eagerly anticipated with businesses and workers all over the 海角视频 keen to hear what changes might offer them vital support.
"For SMEs, some of the big announcements had already been confirmed with things like the ‘Pay as You Grow’ scheme offering businesses with a Bounce Back Loan more time to repay their loans if they need it. The Chancellor did also announce a new Recovery Loans Scheme which would take the place of the BBL and the Coronavirus Business Interruption Loan Scheme (CBILS), which finish at the end of this month.
"The top-up grants for retail, hospitality and leisure businesses were also announced at the weekend and there's no doubt that the months ahead will be pivotal for those operating in these sectors.
"Although the CJRS and SEISS were extended as expected, it appears that the Chancellor did not announce anything new to support SMEs in need of new or additional finance. Although the details are yet to be made clear, it seems unlikely that businesses that have accessed funding from the BBL or CBILS will be eligible to use the Recovery Loans Scheme.
"It's clear that many businesses are still in desperate need of capital to get through this period, but there are also others who are more optimistic about the future and want finance to boost their cash flow, for expansion or to fund new equipment.
"There is a funding gap that will only increase in the months ahead and alternative lenders like ourselves will have a crucial role to play in supporting SMEs and propping up the economic recovery to come in the months that lie ahead.”
Mr Sunak has attempted to pull off a “difficult balancing act” in his Budget statement, said Matthew Johnson, associate partner at Preston-based accountancy and business advice practice WNJ.
He said: “The chancellor’s further support measures for businesses and to protect jobs is welcome, particularly the grants to help retail and hospitality businesses reopen from lockdown.
“It is vital they get as much help as they can amid all the uncertainty they are facing. Getting these businesses reopened will do much to boost confidence and set them on the road to recovery.
“Further support for the self-employed is also good news, with more people now eligible. That will be a relief to the tens of thousands who have been unable to get any financial aid from the government and have struggled throughout the pandemic.”
He added: “It is also good news that, despite giving notice of an increase in Corporation Tax, the new Small Profits Rate, will protect small businesses.
“We await more details on the ‘super deduction’ in tax for companies that invest in innovation and growth and how that will work.”