Leaders deliver mixed views of Reeves' budget

NORTH East business leaders have delivered a mixed response to the Chancellor's budget with some warning it piles pressure on some sectors, while others say there is 'cause for guarded optimism.

- COREENA FORD Business writer [e-mail]

Rachel Reeves's second Budget revealed ahead of time in the accidental early publication by the Office for Budget Responsibility laid out a series of tax rises Ms Reeves is introducing to fill a black hole in the public finances, alongside the launch of measures designed to encourage investment and put money in the pockets of workers.

Stephen Patterson, CEO of Newcastle BID company, which represents the interests of 1,300 businesses in Newcastle city centre said the budget heaps more pressure on the retail and leisure sectors.

He said: “There has been no shot in the arm for businesses or the economy with a budget that takes more from the wages of working people and adds to the financial pressures on businesses. With no tax cuts for working people, and a freeze on income tax thresholds for the next three years, there will be less disposable income and salary to spend. This doesn't bode well for the towns and city centres still reeling from last year's budget, and there was no respite in today's announcement, with additional burdens placed on businesses with the increase in the minimum wage.

“This puts extra pressure on sectors like retail and hospitality, which are already struggling under significant pressure. In the UK, on average, one pub closes every day, and closer to home in Newcastle, 16 hospitality venues have closed since the last budget.”

The North East Chamber of Commerce, which represents around 2,000 businesses, said the Chancellor had attempted "a delicate balancing act" using a series of measures to stabilise the public finances, while welcoming the launch of new funding for the region.