Responding to the Autumn Budget Statement
delivered by the Chancellor of the Exchequer, Anna Leach, Chief
Economist of the Institute of Directors, said:
“Whilst this Budget further increases the tax burden on business,
it is partially offset by some helpful measures.
“We welcome the funding for the Youth Guarantee and the full
funding of SME apprenticeships for those eligible under 25, which
will support young people in their careers. The decision not to
converge the two rates of Landfill Tax will also be a relief to
the construction sector.
“We also welcome the more than doubling of the headroom against
the fiscal rules. This will help calm the frenzy of speculation
which has surrounded fiscal events. The decision to only assess
performance against the fiscal rules once a year may also
contribute to greater stability in policy making. But the leaking
of policy choices in the run-up to this Budget is of grave
concern. It has contributed to substantial declines in business
and consumer confidence, with real impacts on economic activity.
“This Budget does not substantively change the UK's growth
outlook, however – the OBR judge that none of the policies
announced have a material impact on GDP. Public spending is
higher, and business investment even lower than before. The
scaling back of National Insurance relief on pension
contributions – even while the government has launched its
Pension Commission – will undermine retirement savings and the
very investment pools that we need, as well as heaping further
costs on employment.”
