Budget 2017: CBI director praises Hammond's measures to limit business rates rise's impact
BUSINESS leaders praised Budget measures on “rates, roads and ringtones” to help the UK to grow out of austerity.
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Chancellor Philip Hammond pledged to limit the impact of business rate rises by bringing forward the planned switch from RPI to the lower CPI measure of inflation by two years, to April 2018, a move worth £2.3billion to companies over the next five years.
Research and development will receive a £2.3billion boost and a further £1.7billion is being set aside to improve transport links and kickstart economic growth in the Midlands and northern England.
Hammond also unveiled a tax measure to unlock further investment in the UK North Sea oil industry, but was told further action is necessary to boost productivity as the Government prepares to unveil its industrial strategy.
CBI director-general Carolyn Fairbairn said the Chancellor had “gripped the steering wheel on the UK economy”, adding: “This is a Budget that balances support for people on squeezed incomes with vital action to help grow the UK out of austerity.
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“But delivery is everything. Additional investment in infrastructure will help tackle regional inequalities.
The support for housing supply is critical for people and firms.
"Metro mayors will also welcome greater options for transport funding, but regions without devolution deals must not be left behind.
“And by making the most of tomorrow’s technologies, including increasing investment in research and development and fuelling innovation the Government will help create a virtuous circle by drawing in private sector funding.”
British Chambers of Commerce director-general Adam Marshall said: “Chamber business communities wanted the Chancellor to focus on the basics – rates, roads, and ringtones – and will be pleased that they will see some action on all three fronts.
“While more remains to be done to reduce the impact of business rates on investment and growth, his decisions will lessen the impact of rate rises on hard-pressed firms in many parts of the country from next April.
“Commitments to delivering road and rail infrastructure, and working to improve mobile phone signals on key transport corridors, will help to support local business productivity.”
But the BCC warned that the downgraded projections for productivity “highlight the deep-rooted structural problems in our economy – from skills shortages, to infrastructure bottlenecks – and continue to undermine the UK’s longterm growth prospects”.
