Following the publication of the CBI’s snap
verdict on the Budget, Chief Economic Rain Newton-Smith
provides more detailed analysis of some of the key measures
outlined by the Chancellor.
On Covid support measures, Rain
Newton-Smith, CBI Chief Economist,
said:
“The Chancellor unveiled a series of
important business support measures that will provide vital room
for firms, cushioning them until demand returns to offices and
high streets across the country. That included an extension of
the Job Retention Scheme that will keep millions more in work as
we carefully exit lockdown.
“The new Recovery Loan scheme will come
as a huge relief to firms worried about the conclusion of the
business interruption and bounce back loans. The further
announcement of re-start grants to help hospitality,
non-essential retail and tourism firms re-open their doors will
remove some of the anxieties small firms have about the costs
they face. But there is still little support for businesses in
their supply chains who don’t qualify automatically and will have
to apply for a smaller pool of
support.
“For a beleaguered aviation industry that
has been ravaged by the pandemic, the extension of support for
airports is welcome – particularly with significant uncertainty
still remaining over the vital summer holiday season. However
with fixed costs high and passenger numbers likely to take some
time to recover, these measures alone won’t be enough to help the
sector overcome the significant challenges in the months
ahead.”
On the recovery, she
said:
“Looking ahead, the Chancellor also
announced a number of innovative measures aimed at boosting
international links, levelling-up regional economies, deliver net
zero commitments and helping firms hire the people and skills
they need.
“Awarding freeport status to eight sites
across the country, as well as a new Treasury hub in Darlington
and infrastructure bank in Leeds, should bring benefits to local
businesses and help boost wider regional economies – in addition
to bolstering the UK’s global trading position. Firms look
forward to working with local stakeholders to make a success of
these initiatives and ensure they deliver economic gains for
communities across the UK.
“Hydrogen investment in Holyhead and the
announcement of a new green bond, alongside additional support
for floating wind, energy storage and biomass schemes, reaffirm
the UK’s commitment to net zero ahead of the COP26 summit.
Further action on transport and building decarbonisation is now
needed to make this a truly green
recovery.
“Reform of the sponsored visa scheme is a
further sensible move that will help firms of all sizes to hire
and grow as they look to bounce back from the
pandemic.”
