In response to the government’s Spring Statement earlier today, Babs Murphy, chief executive of the North & Western Lancashire Chamber of Commerce, said: “While the Spring Statement might serve as a check on the state of the economy, the Chancellors’ speech lacked substance for the business community.
“Confirmation the Office of Budget Responsibility (OBR) had downgraded the growth forecast for this year will not have relieved any pressures which many businesses are experiencing as they navigate through continuing choppy economic waters.
“With youth unemployment at a five-year record high and a 40% drop in the uptake of apprenticeships, the government risks losing an entire workforce generation. Many Chamber members are feeling the effects of recruiting staff whilst feeling the pinch of the rise in national insurance contributions introduced last year.
“While the Chancellor might be making positive remarks and soundbites about how she believes it is the right plan for the country, her policies are not being felt positively when it comes to growing the economy.
“Many businesses continue to struggle and some are having to pass on the costs of running their companies onto customers, with some having to make hard decisions which will affect their workforce.
“Overall, the Spring Statement lacks of ambition and has insufficient focus on long-term growth strategies.
“Businesses argue that it offers only modest measures aimed at immediate fiscal adjustments rather than bold reforms that could stimulate sustainable economic development. Instead of outlining comprehensive plans to boost productivity, innovation, infrastructure and investment, the statement appears to prioritise short term budget balancing, leaving concerns about future growth unaddressed.
“This cautious approach clearly sparks concern that the government is missing opportunities to create a more dynamic economy capable of adapting to global challenges and ensuring prosperity for all.”
