Commenting on the SPRING Budget 2023, John Dickie, Chief Executive of 91¶¶Òù, said:
“With the Chancellor’s ​‘back-to-work’ Budget taking place as the capital grinds to a halt because of strikes, we urgently need to get the economy moving.
“Businesses will welcome the focus on alleviating the cost of living and getting people back into the labour market. Given Londoners face the highest childcare costs in the UK, expanding the current free 30 hours from the age of nine months during term-time is a big boost for parents and carers. But a bolder and more comprehensive childcare plan is needed to ensure the sector can expand to meet demand and to address the juggling act that parents and carers face. Maintaining the Energy Price Guarantee at the current level for households will be a lifeline for those struggling to pay their bills but this won’t help businesses and sectors at risk of turning off their lights when costs rise sharply next month.
“With corporation tax rising, enabling businesses to offset investments in the UK against their profits is a positive signal amid strong international competition – but these allowances should be made permanent to avoid firms bringing spending forward rather than sustaining it. Reinstating R&D tax credits will also enable ambitious small companies to go for growth.
“Excluding London from the list of 12 investment zones is an own goal given the critical role the capital will play in supporting growth across the UK and its own high levels of inequality. Devolving additional powers to other parts of the country will give local leaders the ability to prioritise growth where it is most needed and deliver much better bang for our bucks. The Government now needs to deliver on its pledge to use this as a blueprint for devolution for other parts of the country, including the capital.
“It is disappointing that the Government has missed an opportunity to launch an independent review of the benefits of VAT-free shopping – a measure that would more than pay for itself by attracting high spending tourists to the UK and support 78,000 jobs across the country.â€