North west businesses give their verdict on 'bold' Budget

Business organisations have reacted to the government’s spending plans for the county.

This was the government's first Budget as a non-EU member in decades and a first for Chancellor Rishi Sunak who declared this was a budget that will “unleash the power of business.”

Mr Sunak declared a number of measures to help small businesses including the scrapping of business rates for thousands of firms over the next year while stressing the importance of levelling the playing field between the north and south with investment on infrastructure and even a promise to build the Manchester and Leeds legs of HS2.

A £30 billion package to stimulate the economy was also announced as the Government and Bank of England sought to protect jobs and livelihoods against the coronavirus crisis.

The Chancellor acknowledged the British people were worried about the threat posed by the virus “but they are not daunted”.

Measures set out by the Chancellor included:

- A £1 billion business rates holiday for retail, leisure and hospitality firms with a rateable value of under £51,000

- The Government will fully meet the cost of providing statutory sick pay for up to 14 days for workers in firms with up to 250 employees, providing over £2 billion for up to two million businesses.

- Reforms to the benefits system to make it easier to access funds will provide a £500 million boost to the welfare system, along with a £500 million hardship fund

- A £3,000 cash grant to businesses eligible for small business rates relief

The announcements for the north west specifically included;

- £40m for Preston City Region to deliver a new station at Cottam Parkway on the Preston-Blackpool line

- £28.2m flood defence funding to better protect over 12,500 properties across Fleetwood, Southport and Manchester

- £191m from the Housing Infrastructure Fund for Manchester and South Lancaster to unlock up to 14,742 homes

- £66m additional funding for local road maintenance in 2020-21 and pothole repairs

- Accessibility improvements at Walkden Railway Station – as part of a wider £50 million investment in station accessibility

- A share of £100m seed funding from the Health Infrastructure Plan for Lancashire Teaching Hospitals NHS Foundation Trust, Pennine Acute Hospitals NHS Trust and University Hospitals of Morecambe Bay NHS Foundation Trust

- A five-year transport settlement for Greater Manchester and Liverpool City Region Combined Authorities starting in 2022-23 which could fund a range of local public transport, cycling and road upgrades

- International Trade advisers focused on the Northern Powerhouse to provide personalised support to exporters in these regions

- £700m for strategic road schemes over the next five years including starting to dual the A66 across the Pennines and improving the M60 Simister Island. We will also develop plans to relieve congestion around South East Manchester

'A northern Chancellor has given a budget which makes a credible start towards levelling up'

Welcoming the news Henri Murison, Director of Northern Powerhouse Partnership said: “Connectivity alongside devolution in North and more funding for R&D outside London has been focus today.

“Northern Powerhouse Rail, which must include a city centre station in Bradford on a new line between Leeds and Manchester is being consulted on as part of a wider network.

“Wider investment in connectivity across the North, including the long term funding settlement to underpin a mass transit system in West Yorkshire, and significant investment in Teesside and Sheffield City Region, as well as West of Pennines in Greater Manchester and Liverpool City Regions.

“The massive share of £4.2bn for London style public transport coming to North because devolution here is now the norm, those places without the exception we will work to bring forward.

“The commitments made to a West Yorkshire devolution deal are just the first step, with further deals across the North from York and Scarborough to Cumbria, Cheshire and Warrington to north and south banks of the Humber.

“Five deals for the North across three fiscal events is our ambition and challenge for Ministers, which we will back them on every step of the way.

“A northern Chancellor has given a budget which makes a credible start towards levelling up – closing the North – South divide by investing in the infrastructure which will underpin the Northern Powerhouse. Ensuring those living and growing up here today can take advantage of the opportunities that will be created here is the challenge for the Comprehensive Spending Review.”

Greig Simms, Partner, Mazars said while the measures announced today went a long way to help small businesses, larger corporates “were left to carry the costs of funding coronavirus survival.”

He said: “A raft of measures provide greater security for smaller business, with loan schemes, refunds of statutory sick pay across the initial self-isolation period and also 12 months rates relief for a variety of sectors who would suffer from falling footfall, including retail, leisure and hospitality.

“Larger corporates- which account for around 40% of ��Ƶ employment and 48% of turnover- will be expected to support themselves through this period, which could well lead to longer term implications for growth, productivity, employment levels and job security.”

Mayor of Greater Manchester Andy Burnham: “Today’s Budget has made a start on levelling up the North”

Andy Burnham talking to students and staff at the University of Bolton (Image: University of Bolton)

Andy Burnham, Mayor of Greater Manchester, said: “Today’s Budget has made a start on levelling up the North but in truth it is only a start.

“Ministers have made a lot of promises to people here over recent months but what has been announced today does not live up to the rhetoric.

“The Government will need to up its game in the Spending Review later this year if, as the Chancellor might say, they are really going to get the Northern Powerhouse done.

“One of the most welcome announcements was the Chancellor signalling the end of the cladding nightmare for thousands of residents across the country. But the devil will be in the detail.

“By limiting the funding to buildings over 18 metres, he is excluding multi-story buildings like the Cube in Bolton which caught fire last year. As welcome as this announcement is, the Chancellor may well need to go further so all residents can sleep safe in their beds.

“The Prime Minister is fond of saying, rightly, that the people of the North lent him their votes. He and his Government will need to do much more in the Autumn than today’s modest measures if he is to repay those loans.”

'The retail sector has been at the forefront of the call for more radical change'

There was some support for the chancellor’s plans to cut business rates but a need for reform was long overdue.

Dan Sweeney, partner at TLT (based in Manchester), said: “Business rates has been a key issue for retailers, leisure operators and their landlords for decades. The impact of those businesses receiving a business rates holiday will be significant. But it also begs the question from a placemaking and infrastructure perspective: what is proposed to fill this gap in local authority funding?

“After numerous false dawns, the Chancellor’s steps are bold and interesting. It remains to be seen if this twelve month proposal allows time for a more detailed and wholesale review of business property occupier taxation.”

Steve Hogg, head of Manchester’s JLL office said: “The Chancellor announced a wide ranging and fundamental review of business rates with the objective of reducing the overall burden on businesses, improving the current business rates system and considering more fundamental changes in the medium-to-long term.

“Whilst we welcome the government’s announcement that it intends to undertake a consultation into major reform of the business rates system and take encouragement from the objectives stated in the review, the government needs to ensure it doesn’t just repeat other recent consultations which have all led to small, iterative changes (the “sticking plaster” approach) rather than meaningful ones and to deliver them quickly.

“The retail sector has been at the forefront of the call for more radical change and in particular have coalesced around the idea that the government needs to remove downward transition at the next revaluation and we therefore take further encouragement from the fact that the review is to focus on this area from April 2021 and we therefore implore the Chancellor to “get transition sorted”

“The abolition of rates for all retail, leisure and hospitality premises with a rateable value less than £51,000 for 2020/21 is also welcome news but many won’t benefit from this measure as they don’t meet the qualifying criteria.”

'It’s also worth highlighting that billions of pounds worth of assistance is available to entrepreneurs and their backers via a range of better targeted tax reliefs'

James Heather, U+I’s Mayfield Development Director welcomed the government’s spending plans on infrastructure.

“The £600bn investment over the next five years in major infrastructure projects in road, rail, affordable housing, broadband and research will help the government fulfil its pledge to rebalance the economy,” he said.

“As a Northern MP, Rishi Sunak will be well aware of the inequalities in per capita transport spending here compared to the South East, and we look forward to seeing specific details on major projects in the coming months.

“The news last month that HS2 will go ahead was perhaps the biggest fillip to confidence the Government could deliver for the North. As one of the largest regeneration projects in the ��Ƶ, Mayfield will be a world-class place to live and work when HS2 and Northern Powerhouse Rail arrives, making it the home for the increased prosperity that this investment will bring to Manchester.”

Phil Hall, AAT’s Head of Public Affairs & Public Policy, said it was disappointing that the Government has failed to scrap the entrepreneur’s relief tax.

“There is an overwhelming body of evidence that indicates the relief does not achieve its policy objectives, that it’s extremely expensive, misguided, poorly targeted and ultimately ineffective - so restricting its availability rather than scrapping it is clearly a missed opportunity.

“The abolition of this relief would in no way be an attack on entrepreneurs or entrepreneurialism and to suggest otherwise is to ignore the evidence. It’s also worth highlighting that billions of pounds worth of assistance is available to entrepreneurs and their backers via a range of better targeted tax reliefs such as EIS, SEIS, VCT and SITR.”

Michael Sandys, FSB Merseyside and Cheshire Area Leader for Liverpool City Region welcomed today’s “pro-small business Budget.”

“It has delivered on manifesto promises to small businesses, a boost for high streets and emergency steps to support small firms through the coronavirus outbreak,” he said.

“On transport, we welcome the commitment not only to HS2, Northern Powerhouse Rail and local rail services but also substantial funding to maintain our roads, including local roads and motorways.

“The Chancellor said he would look at the Treasury’s ‘green book’ guidance on how infrastructure projects should be prioritised, which we hope will re-balance transport spending so that the north gets its fair share. Moving treasury offices and civil servants to the north, new local transport funding settlements and more in City Growth Deals suggest that this is the direction of travel in the Government’s thinking.

“Of course, digital infrastructure is equally as important, with FSB members in many areas reporting slow speeds and poor connectivity, and we welcome today’s announcement of significant funding for broadband and the phone network.

“Liverpool City Region is a hotbed of innovation and ideas, including our internationally-respected knowledge clusters and universities, so extending R&D credits and increasing investment, and a commitment to ensuring it is spread more evenly across the country backed by a new ‘Blue Skies’ funding agency, is also welcome.”

'As the only major telco to have relocated our whole business to the North of England – we congratulate Government on today’s investment and say to other businesses, ‘come on up’'

Welcoming the government’s £5bn broadband boost, TalkTalk boss Tristia Harrison said: “Investment in levelling up and Britain’s full fibre future is vital, so today’s Budget measures are hugely welcome, particularly getting to harder to reach areas that have been left behind for too long.

“But for Government to reach its full fibre rollout target, three things are vital: the consumer – so prices are fair; competition – so the £5bn rural subsidy doesn’t end in one company’s hands; co-operation within industry to deliver for the whole country.

“As the only major telco to have relocated our whole business to the North of England – we congratulate Government on today’s investment and say to other businesses, ‘come on up’.”

Dame Carolyn Fairbairn, CBI Director-General, said the Chancellor had managed to deliver two Budgets in one - first for national resilience and a second for economic ambition tomorrow.

“It’s a bold Budget at scale, coordinated with the Bank of England, which will help people and business through tough times.

“As the ��Ƶ responds to the immediate challenge, people are the first priority. So the measures to expand and ease access to sick pay and benefits are vital to protect people’s health and livelihoods.

“The Chancellor’s actions on business rates, emergency funds and loans will help ensure firms can weather the storm, especially smaller firms. Larger firms may also need support as the situation develops.

“Covid19 will bring new challenges daily which will need to be resolved, at speed. “Today’s impressive economic response should now evolve with business insight to become as agile as our approach to public health.

“While the response to Covid19 is urgent, it is very good to see this Budget’s focus on innovation and infrastructure. The Chancellor has listened to many calls from CBI members, with decisive action on vital long-term issues.

“The significant uplift in R&D funding, creation of a ��Ƶ version of ARPA, a fundamental review of business rates and spending promises on infrastructure will all bring real benefits to people, business and communities.

“The Chancellor has set out some powerful incentives to get businesses investing, increasing the R&D tax credit and the Structures and Buildings Allowance. The £5bn of new export loans will encourage the best of ��Ƶ business to look to new global markets.

“The next few months will bring opportunities for the Government to make major decisions that they have understandably had to put to one side today. Some gaps still need to be filled in around skills, energy efficiency and powering the ��Ƶ’s low carbon future.

“Overall, today’s Budget is a powerful signal to firms at home and abroad that the ��Ƶ can and will manage the immediate challenges and long-term opportunities in parallel.”

Metro Mayor hails transport boost - but not all good news

Steve Rotheram, Metro Mayor of the Liverpool City Region, said: “Today’s budget showed the benefits for our city region of having devolution and a Metro Mayor.

“After months of lobbying we were successful in securing a share of £4.2 billion for transport to build the London-style transport integrated system we need, a share of £400 million for development on brownfield land and further investment in FE colleges.

“This shows that across a range of areas funding is coming to areas like ours, which have a Metro Mayor, while areas that don’t missed out.

“But despite some positives it was not all good news today. Extra support to tackle the Coronavirus is welcome, but it comes on the back of the decade of austerity that has been endured by our NHS and councils. In many ways this was an admission of failure for a decade of under investment in our public services and the brutal human impact it has had."

“An overhaul of the current rates system has been long overdue”

Sacha Lord, night time economy adviser for Greater Manchester, said: “An overhaul of the current rates system has been long overdue, so I’m pleased to see the Chancellor investing in smaller businesses and independents across the high street with the rate cuts and the freeze in alcohol duty.

“I hear from business owners across the night time economy on a regular basis, and there has been a growing concern, especially among restaurants, music venues and cinemas regarding rising taxes.

“This has been particularly notable with the smaller independents and those in the suburbs and communities such as Oldham or Wigan who can’t rely on passing traffic to boost trade, or large parent companies to cover losses.

“Overall there are still fewer pubs and bars in the ��Ƶ than in 2001, so anything we can do to support those in the sector is positive. I’m continuing to push for more to help owners, especially in this current unprecedented and challenging environment, but today’s news goes some way to relieving the immediate pressure these businesses face.”

KPMG: "We've got a Red Box for the regions"

Warren Middleton, office senior partner for KPMG in Manchester, said:

“We got a Red Box for the regions representing a government mindset that recognises the need for regional prosperity to help the ��Ƶ economy to thrive.

“While the Chancellor’s further commitment to Northern Powerhouse Rail and a new northern economic campus will always be welcome, it is the additional £4.2bn committed to regional combined authorities that will pique the interest of businesses in the North West.

“Devolution has been a major success for both Greater Manchester and Liverpool, and both city regions are at the head of the queue to decide how best to invest that money in local transport infrastructure.

“With additional commitments to improving the strategic road network around our key economic hubs, we can be hopeful that the Chancellor’s spending spree will help put a significant dent in the region’s productivity issues.”

Liverpool Chamber of Commerce: “Today’s announcements are positive for businesses”

Paul Cherpeau, CEO of Liverpool Chamber of Commerce (Image: Gareth Jones)

Paul Cherpeau, chief executive of Liverpool Chamber of Commerce, said: “The potential impact of the Coronavirus outbreak on our economy is starting to unfold with several of our businesses now reporting disruptions to operations. As expected the budget provided much needed measures and reassurances designed to support businesses which must now be implemented quickly and decisively.

“The robust measures include a 100% reduction on business rates relief for retail, leisure and hospitality businesses and a £3,000 cash grant for some eligible small businesses to support them during the outbreak.

“The financial implications of sick pay liability during the Coronavirus outbreak for businesses and employees has been a particular concern. It is a welcome relief that businesses will not face the cost of statutory sick pay alone if employees are required to self-isolate. The Government has promised to fund SSC for up to 14 days for businesses with less than 250 employees, and employees can claim sick pay from day one.

“In conjunction with the Bank of England's decision to cut interest rates from 0.75% to 0.25%, today’s announcements are positive for businesses. It is essential that the accessibility to the support announced is simple, quick and robust to ensure the provision of an adequate safety net to help businesses whose cash flow and prospects have been disrupted due to the impact of Coronavirus.”