Budget 2020 - positive response from Shropshire businesses

The age of austerity seems to be well and truly over, after Chancellor Rishi Sunak delivered one of the biggest cash giveaway budgets in a generation.

There were celebrations on the Shropshire border, as the go-ahead was finally given for the long-promised Pant and Llanymynech bypass.

Shropshire is also set to benefit from a £320 million fund to repair and extend flood barriers and defences, plus a huge pothole-fixing fund. And many other local businesses will benefit from business rate cuts.

Richard Sheehan, chief executive of Shropshire Chamber of Commerce, described the Budget as 'very, very positive' for the Shropshire business community, with 'an astonishing amount of money' being pledged to support the economy.

"Clearly the devil is going to be in the detail, but the initial response can't be anything but positive," he said. "Business rate relief will be welcomed, and looks set to pave the way for an even more complete review of the system, and the announcements on statutory sick pay will help many companies.

"There is support for small businesses, for our pubs, our high streets - it seems that the Chancellor has listened to, and responded to the lobbying of the business community, and acted swiftly. The amount of money being ploughed into the economy is unbelievable."

Responding to fears over the impact which coronavirus could have on our economy in the coming weeks, the Chancellor announced a one year extension to the retail discount to leisure and hospitality sectors, as well as abolishing business rates for firms with rateable value below £51,000 for 12 months. This has been described as a positive measure for many small firms in the UK, by the FSB.

Other headlines - many designed to help companies through an economic slowdown caused by coronavirus - included:

• A £3,000 cash grant to 700,000 smallest businesses, paid by local authorities, worth £2bn.
• A new Coronavirus Business Interruption Loan Scheme that will see banks offer loans of up to £1.2m to support SMEs.
• Time To Pay service, allowing businesses and the self-employed to defer tax payments over an agreed period of time.
• Statutory Sick Pay costs for businesses with fewer than 250 employees will be met by the government in full for up to 14 days per employee.
• Over the next twelve months, nearly half of all business properties in England will not pay a penny of business rates.
• Statutory Sick Pay will be available for all those who are advised to self-isolate – even if they haven’t yet presented with symptoms.
• Business rate discount for pubs will be £5,000 for this year, and planned rise in beer duty cancelled.
• Fuel duty to remain frozen for another year
• Living wage to rise to £10.50 by 2024
• National Insurance threshold to rise to £9,500 by April
• Entrepreneurs' Relief to be scaled back, but not abolished
• R&D investment to rise to £22bn a year
• Doubling investment in flood defences to £5.2bn
• A new £2.5bn pothole fund to fill 50 million potholes over the current parliament
• Pant and Llanymynech bypass on the Shropshire-Wales border to finally be built

Peter Reynolds, from Dyke Ruscoe & Hayes accountants in Ludlow, said: "It was an exhausting speech for all those listening, as the Chancellor gave away money almost every minute, to almost every sector.

"There was lots of good news for the sorts of small businesses we look after – with SSP funded in full for the first 14 days, retail, leisure and hospitality rates for smaller premises abolished, small business rates relief recipients getting a cash grant of £3,000, Employment Allowance going up to £4,000, etc.

"The worry is where it’s all coming from; the detailed press releases will need careful examination. In spending terms it was a Budget a Labour Chancellor would have been proud to present; in funding terms I fear that future taxpayers may well be paying for all this generosity."

Neil Lloyd at law firm FBC Manby Bowdler said: "The Government's announcement last week that Statutory Sick Pay would impact from day 1, rather than day 4 was great news for employees, but could have proven tricky to businesses who'd be left to cover the cost at a time of already heightened disruption.  

"Today's announcement, therefore, that for businesses with fewer than 250 employees SSP will be refunded for up to 14 days, even where employees have to self-isolate without symptoms, should be welcomed."    

Bridgnorth-based web design company Clickingmad welcomed the Chancellor's announcement of a £5 billion investment in high-speed gigabit-capable broadband for hard-to-reach areas.

Managing director Shaun Carvill said: “It is absolutely vital that every area of our country has access to a strong, fast and robust broadband connection. The pace of change in the digital world means that no area can afford to be left behind when it comes to access to what is now an essential utility.

“This announcement is a welcome step towards ensuring that businesses in rural areas such as ours can compete with their urban counterparts on a level playing field and enjoy all the economic benefits that the digital revolution is bringing.”

He also welcomed the Chancellor’s announcement of  £510m of new investment into the shared rural mobile phone network.

‘We know that many of our clients are incredibly frustrated by the lack of decent 4G mobile phone coverage across Shropshire, so a pledge to ensure coverage reaches 95% of the country in the next five years is very promising.”

Anton Gunter, managing director at Global Freight Services in Telford, said: “The announcement of £5bn of new export loans to businesses is good news for all those companies developing new markets overseas.

"The appointment of regional trade envoys will also provided some much-needed support for our exporting companies and the overall package of measures to develop the infrastructure necessary to help business thrive is very welcome.”

And Sophie Williams, financial director of Corbetts the Galvanizers, in Telford, added: ."Sustained investment in infrastructure is welcome news, but the Government needs to ensure that the majority of this spend cascades into the UK supply chain. Too many times, we've outsourced work to the detriment of domestic businesses and the economy.

"If they get this right then we will certainly be in line to benefit as one of the main markets for our galvanised steel is infrastructure and utilities. It will give us the confidence to continue to invest in what is still a very volatile economic picture."