Lukewarm reception for Chancellor's plans
BUSINESS reaction to yesterday’s Pre-Budget Report was muted with many calling it disappointing although measures to help the region’s smaller companies have been welcomed.
The increase in National Insurance has been called a tax on job creation and the windfall tax on bankers described as dangerous.
However the additional time to pay tax measures and deferment of the Corporation Tax has been applauded along with the extension of Empty Property Rates relief and measures to stimulate the environmental economy and innovation.
Sarah Green, regional director, CBI North East, said: “The Chancellor has made a serious mistake imposing an extra jobs tax at a time when the economic recovery will still be fragile. Increasing the National Insurance contribution will hold back job creation and growth.
“He has also missed the opportunity to increase the UK’s credibility by reducing the public deficit earlier. We are no clearer today as to how the Government plans to reduce public expenditure.
The North East Chamber of Commerce (NECC) expressed concern that the Chancellor had shied away from making big decisions that would seriously reduce the UK debt mountain.
James Ramsbotham, NECC chief executive, said: “Alistair Darling took the right decision not to end a number of key tax concessions for businesses before the recovery is firmly underway.