North-east chamber voices dismay over lack of new cost measures in mini-Budget

A leading north-east business group has said Chancellor Kwasi Kwarteng’s new growth plan offers nothing new to bring down firm’s costs.

Responding to the UK Government’s mini-Budget today, Aberdeen and Grampian Chamber of Commerce policy director Ryan Crighton said: “Every business in the land shares the chancellor’s ambition to bring in a new era of growth for the UK economy.

“This is a bold and momentous intervention from the UK Government and it is now crucial that we see this package mirrored here, in full, to avoid Scotland losing its best talent and companies to the rest of the UK.”

He added: “For many, it is already more expensive to work or buy a home in Scotland – the Scottish Government must now ensure Scotland doesn’t lag behind the rest of the UK as a high tax, low growth neighbour.

IR35 repeal a welcome move for north-east

“For the north-east, the repeal of unpopular IR35 rules will be welcomed by the oil and gas sector, which relies on the flexibility offered by contractors.

“We also look forward to hearing more about how proposed investment zones could boost Scotland’s economy and what potential opportunities there could be for Aberdeen and Aberdeenshire.”

But on a gloomier note, Mr Crighton said: “For all that was positive, we hope this significant package hasn’t come too late.

“We are already seeing firms going to the wall in the north-east, crippled by a toxic cocktail of rising costs, labour shortages and high energy bills.

“For all its boldness, what was lacking today was a package to bring down costs, which is the most pressing pressure for most businesses.”

For all that was positive, we hope this significant package hasn’t come too late.”

Ryan Crighton, policy director, Aberdeen and Grampian Chamber of Commerce.

Mr Kwarteng outlined a series of tax cuts and economic measures aimed at growing the economy.

Wage earners south of the border will pay less income tax, while the thresholds for stamp duty in England and Northern Ireland has been raised to stimulate the housing market.

An increase in National Insurance has been reversed and low-tax investment zones will be set up across the UK.

A six-month energy price cap for businesses was announced by the UK Government earlier this week.

What does Kwarteng’s mini-Budget mean for Scotland?

Mike Duncan, north-east development manager at the Federation of Small Businesses, said: “Announcements on income tax, investment zones and planning reform are either wholly devolved or at least involve co-operation between our various governments.

“We will be watching closely to see how the Scottish Government decides to proceed, and indeed, how it chooses to spend any resulting consequentials.”

Scottish Retail Consortium director David Lonsdale said much if the chancellor’s mini-Budget would have only a limited impact on Scottish consumers and businesses.

Mr Lonsdale added: “With the UK Government accelerating its planned reduction in the headline rate of income tax, bringing it forward to next April, Scottish ministers should ensure workers on low or modest earnings here in Scotland benefit similarly to boost household incomes and encourage discretionary spending.”

Mr Lonsdale added: “Today’s announcement provided no insight on what decisions might be made on business rates.

“With the Scottish poundage already at a 23-year high and inflation elevated, the biggest question for many retailers will be how large next year’s bill might be – and whether they will be able to afford it.

“Scottish retailers are facing a £60 million uplift in their rates bills next April.

“The upcoming emergency budget review and Scottish Budget need to freeze the business rate and speed up the commitment to restore the level playing field with England on the higher property business rate.”

Is there anything new for the Scottish hospitality and tourism sectors

Scottish Licensed Trade Association managing director Colin Wilkinson said: “Two of the biggest concerns for the hospitality sector – a reduction of the 20% VAT rate and a cut in business rates – did not even get a mention.

Scottish Tourism Alliance chief executive Marc Crothall said: “More specific and immediate measures are needed for our tourism and hospitality sector.”