Wednesday 30 October 2024

In response to the Budget, Karim Fatehi MBE, CEO of the London Chamber of Commerce and Industry, said: 

“While we welcome the Government’s commitment to economic growth, we are deeply concerned that the Budget has not gone far enough to protect London businesses which are the engine room of nationwide growth.

“While we support investment in public services, the combined package of increased employer National Insurance Contributions, cuts to business rates relief, and minimum wage increases will create a challenging environment for businesses and curtail their ability to invest or hire new people and, at worst, may see hard-pressed bricks and mortar retailers and hospitality businesses close their doors. 

“It is disappointing that there was no announcement in the Budget about ending the counter-productive “tourist tax” for overseas visitors which leaves British businesses at a massive global disadvantage as tourists spend money in hotels, shops, and restaurants elsewhere. The decision not to reintroduce the scheme is costing Britain £11.1 billion in lost GDP every year and deters 2 million people from visiting, once again punishing the retail, hospitality and leisure sectors. 

“We are however pleased to see commitments to transform the Apprenticeship Levy into a more flexible scheme. As part of this, we urge the Government to increase flexibility by extending the deadline for employers to spend Levy funds and allowing it to be used for pre-employment training. 

“While the news about HS2 extending to Euston is welcome, we need a commitment to infrastructure improvements in London beyond the capital renewals programme. Without significant investment in transport networks and a long-term funding plan for TfL, the capital’s ability to grow and compete globally remains hindered. 

“We are pleased that the government has announced the extension to the Advanced Fuels Fund, but we would like to see HMT to commit to working closely with DfT to ensure that a long-term revenue certainty mechanism for SAFs is delivered as soon as possible, to ensure that London and the UK is a global leader in Sustainable Aviation Fuels (SAFs).

“Having weathered a cost-of-living crisis, soaring inflation, higher borrowing costs, and trade tensions, London businesses are losing faith in the Government’s economic growth strategy.  We were promised stability and an operating environment conducive to growth, and yet businesses are now left shouldering the consequences of this Budget with minimal support.”

ENDS