Rachel Reeves, chancellor, outlined a fresh set of cuts to government spending: blaming a dramatic slowdown in growth.
For businesses across the board, that has been a disappointment. Stalled growth could mean jobs under threat and an uncertain set-up for businesses.
And for many sectors – such as alcohol - there has been little clarity as to what to expect.
Nicola Bates, CEO, WineGB, said: “We are disappointed in the halving of growth projections in the Spring Statement and what this means for consumer confidence. Until we better understand the consequences of the Spending Review to our key departments Defra, DBT and FCDO, we remain concerned about agriculture and agri-food beverages being omitted from the industrial strategy, and potentially what this means for the Great British domestic wine sector.”
The beer and pub sector is equally worried.
“The Spring Statement was the perfect chance to sow the seeds of growth but Government missed the opportunity, has not listened to business, and we can now expect to see prices rise, jobs at risk, and growth downgraded,” said Emma McClarkin, CEO of the British Beer and Pub Assocation.
“For a Government whose mission is growth, there is an alarming lack of a plan to boost the economy, given they’ve buried brewers and pubs under mountains of regulations, rates, and taxes.
“We now predict that, following the Spring Statement and taking into account the new costs coming into effect from April, the sector will now face an additional £70 million per month, the equivalent of 5,700 jobs per month. We can expect to see pubs close at a faster rate which will risk growth and jobs and hurt the communities who rely on them.
“Time is of the essence, so if Government truly wants to unlock growth and support jobs they must reform business rates, deregulate, review the new chaotic and punishing EPR [Extended Producer Responsibility] fees, and phase in employment costs.”
Firms across the board will feel the effects of the budget.
Shevaun Haviland, Director General of the British Chambers of Commerce (BCC) said: “The government must focus on reducing the cost pressures for businesses, boosting investment and exports.
‘Firms are realistic, but they are also hurting. Within days they will be faced with higher National Insurance (NI) contributions and a rise in the National Living Wage (NLW). Our research shows 82% of businesses will be impacted by the NI hike – with firms forced to raise prices, postpone investment and cut back on recruitment. That’s why we need a wider tax roadmap for business.”
