'Steady Statement' - but business calls for boost

No news is good news. Steady as she goes. Cautious positivity.

Britain’s battle-hardened business community has delivered a measured response to Chancellor Rachel Reeves’ Spring Statement.

Amid forecasted falls in unemployment and inflation, the Chancellor told Westminster the economy is growing thanks to new-found stability.

Yet while welcoming the calm following previous costly headline policy changes, leaders warned the fiscal chief must swap fine-tuning for more powerful action if she is serious about truly supercharging the country’s commercial engine.

And they also called on the Chancellor to provide protection against the anticipated headwinds caused by the ongoing Middle East conflict.

Here, Bdaily highlights a selection of leaders’ reactions to the headline financial event.

Shevaun Haviland, director general of the British Chambers of Commerce, said: “The Spring Statement confirmed the UK economy is heading in the right direction, but a further acceleration is needed. 

“With GDP expected to grow well below two per cent a year until 2030, unemployment set to rise in the near term and net trade remaining anaemic, there is more to do.   

“Immediate priorities must be accelerating long overdue business rates reform and making sure changes to employment rights don’t add unnecessary costs.  

“Firms also need policies that help them invest in skills and artificial intelligence to increase productivity.”

Dr Ryan Swift, research fellow at think tank IPPR North, said: “The Chancellor’s decision to increase the headroom has paid off for now. 

“But people will be measuring their own financial stability. 

“The conflict in the Middle East will raise concerns that household bills will be back on the rise. 

“With unemployment rates in the North among the highest in the country, and set to increase this year, the Government needs a clear plan to take action. 

“Improving regional growth and providing further investment into industry and vital infrastructure, unlocking potential in the North, must be part of the answer.” 

Julian Jessop, economics fellow at the Institute of Economic Affairs, said: “The Chancellor sent a signal of 'steady as she goes', but what was really needed was a change of course.

“There is little sign the Government’s economic plan is working.

“The Chancellor's speech was light in three areas.

“There was not enough acknowledgement of the part the Government’s policies have played in freezing hiring and driving up unemployment. 

“There is still no clear plan to bring spending under control, and energy policy is a mess.

“Renewables may or may not be the future, but the disruption in the supply from the Middle East has underlined the need to make more use of oil and gas reserves.”

Anisha Chawla, private client tax manager at accountancy and business advisory firm Menzies LLP, whose office estate includes sites in Birmingham, Cardiff, London and Manchester, said: “A low-key Spring Statement is exactly what the UK needs after months of turbulence and policy reversals.

“But stability cannot become a ‘say nothing now and revisit it later’ strategy.

“Businesses are not looking for difficult decisions to be quietly deferred in the hope they avoid scrutiny – they are looking for certainty and direction.

“Silence alone will not rebuild confidence.

“Recent increases in national insurance contributions and an inflated tax burden have placed significant strain on Britain’s businesses.

“Without a clear and consistent growth strategy, confidence will remain fragile, and investment and planning will continue to stall.”

Mark Casci, head of policy and representation at West & North Yorkshire Chamber of Commerce, said: “There are still some key areas which require attention.

“The economy is expected to grow, but at a rate lower than two per cent.

“Further acceleration is needed if businesses are to have long-term confidence to grow.

“The OBR’s inflation forecast was produced ahead of the disruption caused by the widespread military clashes seen in the Middle East.

“Yorkshire’s employers need to feel the wind at their backs so they can invest, create more jobs and produce greater goods and services that our region has been synonymous with for centuries.”

Julie Fisher, UK chief executive at London-based business insurance provider Simply Business, said: “Small businesses are the backbone of the economy, supporting 16.9 million jobs.

“The Spring Statement painted a picture of gradual economic improvement, but for small businesses and sole traders, the numbers tell a different story. 

“Growth is slowing, inflation is still biting and business rates are rising ten per cent from April's revaluation.

“In a world of deepening uncertainty, stability matters — but the nation’s 5.7 million small businesses and self-employed deserve better conditions for growth. 

“When one in five are considering dipping into personal savings to keep the lights on, this stops being a business story and becomes a human one.”

Jon Di-Stefano, chief executive of Bicester-based Greencore Homes, said: “We saw very little in the way of housing announcements in the Autumn Budget, so we now need to see a continued focus on supporting housebuilding and homebuyers.

“The Chancellor’s statement is an opportunity to build confidence in the housing market.

“Alongside a push to build more homes, we must also ensure there is sufficient buyer confidence for the Government’s agenda to succeed.

“Making it easier for people to buy and sell homes will not only support the housing sector but will also help drive growth across the wider economy.”

Jon Hope, interim chief executive at national tech start-up support organisation CodeBase, said: “The Spring Statement signals a steadier approach to fiscal policy – a welcome moment of predictability for founders and investors after years of churn.

“But stability must translate into confidence for businesses to invest, hire and expand.

“The UK’s start-up and tech ecosystem doesn’t need constant new announcements.

“It needs clarity, consistency and follow-through on pro-growth commitments.

“For scaling companies, that means access to talent and capital, support for artificial intelligence and emerging technologies, and a policy environment that backs high-growth firms across every region.”

Rhiannon Bearne, deputy chief executive at the North East Chamber of Commerce, said: “The Spring Statement was clearly designed to reinforce stability, rather than introduce significant new policy. 

“Businesses in the North East are therefore likely to cautiously welcome the focus on predictability in fiscal policy and its consistent approach to the public finances.

“However, the revised growth forecast of 1.1 per cent this year compared to 1.6 per cent, combined with unemployment now forecast to peak at 5.3 per cent, underlines the fragility of this stability. 

“While the Government is on track to meet its borrowing rule and has increased its fiscal headroom, firms across our region need to see those positive macro-economic signals translated into stronger, sustained growth.”

Jon Stott, chief executive at land and infrastructure advisory firm Ardent, which works on transport, utilities, renewables and regeneration schemes across the UK, said: “For projects spanning transport, renewables and regeneration, the challenge is increasingly one of coordination and execution.

“Securing funding is only part of the equation; ensuring schemes progress efficiently from planning through to delivery requires early alignment between landowners, developers, utilities providers and public bodies.

“As growth ambitions continue alongside the energy transition and regional development priorities, effective land and stakeholder engagement strategy will play a decisive role in determining whether investment translates into tangible outcomes.

“The emphasis now is on delivery and turning long-term commitments into infrastructure, homes and resilient networks on the ground.”

Paul Shields, partner and head of the Newcastle office at chartered accountancy and advisory firm Johnston Carmichael, said: “While the Spring Statement was positioned as a steady, no-surprises update, the reality for many businesses across the North East is far from steady.

“We are already seeing high levels of unemployment in certain sectors, alongside significant cost pressures.

“Employers are dealing with increased wage bills, rising energy costs and higher employment taxes, all while trying to remain competitive in markets that are becoming more cautious and volatile.

“The wider global backdrop only adds to that strain. Stability and clarity are what businesses need most.

“Over the months ahead, ensuring businesses have the confidence and support to navigate this environment will be critical to protecting jobs and driving regional growth.”

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