Chancellor Jeremy Hunt has delivered the Government's latest to MPs in the House of Commons.
Among the major announcements was the news that the UK will not enter a technical recession this year according to the Office for Budget Responsibility forecast. The OBR said inflation to fall from 10.7% last year to 2.9% by the end of the year.
The Chancellor added that a "Brexit pubs guarantee" will see the duty on draught products in pubs up to 11p lower than the duty in supermarkets from August. Fuel duty will also be frozen for the next year.
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He also confirmed that Greater Manchester and Liverpool have been earmarked to be home to a new £80m investment zone.
Mr Hunt added that a three-year policy of "full expensing" for businesses will mean every pound a company invests in IT equipment, plant or machinery can be deducted "in full and immediately" from taxable profits, a move worth £9bn a year.
The Chancellor also announced an "AI sandbox" to boost support for artificial intelligence businesses in the UK, as well as a "quantum strategy" to support the future of computing and abolished the £1m lifetime allowance on pension savings. The annual allowance will now rise from £40,000 to £60,000.
Full coverage of all the announcements made in the Budget can be found here.
As soon as Mr Hunt sat down after delivering the Budget, businesses across the North West have given their reaction to the announcements.
Below, BusinessLive has rounded up the vast range of opinions to this year's Budget.
This page will continue to be updated throughout the afternoon
JLL
Head of regions Simon Peacock said: "The Chancellor was always unlikely to pull any rabbits out of the hat with this statement given the need for stability and to reassure markets.
"Still, those in the property sector – particularly outside London where levelling up remains a priority – will be hoping to see more urgency on spending in the regions in the coming months to make an impact across communities.
"Reports that around £2.5bn remains unspent from the levelling up fund will prove frustrating to those hoping for support for underserved communities.
"As inflation looks likely to subside later in the year and the economy moves to a surer footing, the property sector will be hoping this statement is the chancellor laying the groundwork for more extensive support in the future."
Steve Hogg, head of the North West, added: "Today’s Budget was always unlikely to contain many surprises given the need for economic stability and to reassure financial markets. Still, an additional pot of funding for development in Greater Manchester, as well as a commitment to improve its transport infrastructure, will be welcomed by businesses across the region.
"Elsewhere, recent commitments made to R&D funding and the new Science and Technology Framework are seen as hugely significant for the region as it continues to grow its knowledge economy and attract world-class innovation businesses.
"As inflation looks likely to stabilise later in the year, many in the property sector will be hoping that the chancellor is using this statement as a foundation for more extensive support in the future."
Sacha Lord, Night time economy adviser for Greater Manchester
He said: "While the announcement on beer duties will enable operators to become more competitive against supermarkets and retailers, the current situation for the hospitality sector continues to be dire.
"In the face of rising bills, business rates and inflation, operators urgently need ongoing support and the Chancellor's announcements, or lack of them, will only further frustrate and anger the industry.
"By its very nature, hospitality is an industry with higher-than-average gas and electricity usage, and is a sector that has seen incredible economic damage over the past three years.
'It is therefore disappointing that the Chancellor has not announced a delay to the planned decrease in business energy support or any sector-specific package for the industry.
"The tapering off of business energy support from the end of March has been forecasted to add £4.5 billion to bills compared to the current scheme, and simply put, this will place the industry in an unsustainable predicament and create a sinkhole of financial difficulty for venues across the sector.
"A third of businesses are already cutting trading days as a result of spiralling energy bills and today operators will be even more concerned over how they will continue to pay bills and wages.
"Without energy support, a rise in insolvencies is inevitable as operators conclude the reality of running a business in hospitality is simply no longer financially viable.
"Sadly it is the smaller, independent and often family-run businesses which are taking the brunt of the economic downturn, and who once again are at the precipice of closure.
"I urge the Government and Treasury to reconsider its level of support for the UK’s fifth largest industry to avoid these unnecessary closures and job losses. We are an industry that has historically contributed £66 billion per year to the UK economy pre-Covid, and with the right intervention, I have no doubt the sector can thrive once again and aid the economic growth of this country."
He added: "Greater Manchester is regularly outpacing London as a centre of economic growth and investment in the UK, and I'm pleased this is being recognised by the Chancellor. The Investment Zone announcement will instil an even greater confidence in the city-region by overseas investors and UK companies ripe for expansion."
Impact Data Metrics
Chief executive Neil Murray said: "While any intervention to stimulate growth in the regions is a positive, the scale of these watered down Investment Zones, offering tax reliefs of £80m over five years, is not going to be a game-changer.
"Global companies will be far more mindful of the increased rate of corporation tax, which at 25% from April makes the UK distinctly anti-competitive.
"Rather than pushing the needle in terms of meaningful levelling-up, Jeremy Hunt was tinkering around the edges today.
"As the next election nears, I'm sure we'll see more headline grabbing policy announcements from the government in next year's Budget."
Moda Living
Planning director James Blakey said: "This Spring Statement afforded the Chancellor an opportunity to show true leadership and address housing reform in the right way – something his party’s backbenchers seem to want to avoid with their proposed and already widely criticised reforms to the National Planning Policy Framework (NPPF).
"Let’s make no mistake: this country is in a housing crisis. There are well documented problems with housing supply, problems with the diversity of housing being supplied, and problems with the planning regulations around approvals and where new housing should be situated.
"This government wants to generate economic recovery but that requires flexibility and choice in housing. As such, fundamentals needed to be addressed in the Chancellor’s statement. For example, the recent Lichfield report into sufficient brownfield land clearly indicates several issues - lack of available sites, lack of space and an increase in apartments as a result, and the subsequent challenges caused by developments not meeting local housing needs or the desires of different demographics, such as families.
"When you couple that with a government that is being investigated over the political motivations behind the reforms to the NPPF – something that will reduce the already-delayed annual 300,000 new home target, to somewhere around 150,000 – and you’re left with a housing market that is completely misaligned to the needs of the country.
"What we were looking for from the Chancellor’s statement was a true ‘levelling-up’. This is required, not just for a population in need of sufficient and affordable housing, but for the private sector that can help, but needs to be given the tools, incentives, and backing to develop both brownfield and greenfield sites and get the right roofs over everyone’s heads."
Browne Jacobson
Partner Barry Sully said: "Chancellor Jeremy Hunt announced 12 ‘investment zones’ in today’s Budget, saying each one could be a 'potential Canary Wharf' in terms of local regeneration.
"Each zone will receive £80m towards skills, infrastructure, tax reliefs and business rates retention.
"This is a significant shift from the original proposals, unveiled in last year’s ‘mini-budget’, which focussed on tax incentives and liberalising planning rules and follows criticism that skills shortages and lack of infrastructure (particularly transport) are greater obstacles to economic growth.
"However, we await further detail. In particular, recent briefings suggested zones must be dedicated to one of several ‘key sectors’ but this wasn’t mentioned by the Chancellor.
"To be fair, it’s very early days. Don’t let the name fool you – these investment zones are very different to what we were taking about in September last year."
Net Zero North West
Chief executive Ged Barlow said: "News of the £20bn investment into Carbon Capture and storage projects across the UK is great news for NZNW.
"This funding will substantially help projects such as HyNet in the North West to speed up the decarbonisation ambitions, whilst creating and safeguarding green jobs for our local communities that will invest back into the local economy.
"The shift to full capital expensing is also a significant measure to help business invest in green technology, which is vitally important as firms around the region push ahead in the race to net zero."
Praetura Ventures
Partner Jonathan Prescott said: "The changes to the research and development (R&D) tax credit scheme are an example of giving with one hand while taking away with the other.
"It’s not yet clear which businesses will qualify for the enhanced credit package, so it’s likely huge swathes of Britain’s SME community - that would otherwise be primed to invest in innovation - will now have limited access to the support. By incentivising larger businesses more than the wider start-up community, the Treasury risks undermining the Chancellor's vision to “make the UK home to the next Silicon Valley.
"In a more welcome development, the news that the £1m prize for most innovative AI research will be dubbed the ‘Manchester Prize’ is a great recognition of the region’s momentum in this space, and a tribute to the many pioneering early-stage businesses based here."
Grant Thornton UK LLP
North West practice leader Carl Williams said: "The so-called Back to Work Budget has some sensible and welcome measures to stimulate regional growth and investment, while also tackling social inequalities and energy prices before inflation starts to fall.
"The new Investment Zones won't mitigate the huge hike in corporation tax from next month, though the £1.8bn package of support for SMEs investing in R&D will be welcomed, as innovation is critical to higher productivity and job creation."
Graphene@Manchester
Chief executive James Baker said: "The new Investment Zone in Greater Manchester has the potential to put the region at the forefront of the government’s new science and technology strategy and strengthen the regional economy, creating new businesses and new jobs.
"We have a proud heritage of innovation – going right back to the likes of Ernest Rutherford and Alan Turing – and we’ve now got the next generation of pioneering businesses in areas like artificial intelligence, advanced materials, sustainable construction and even space exploration, that are putting Manchester at the forefront of innovation once again.
"We need to take this opportunity to create an environment where these businesses can thrive and become industry leaders not just here in the UK, but on an international stage."
JMW Solicitors LLP
Thomas Pearson, partner and joint head of real estate commercial, said: "There’s a lot in this Budget for Greater Manchester. In particular, we welcome the announcement of the 'trailblazer' devolution deal, not least because we’re sure Andy Burnham, Greater Manchester’s mayor, is heartily sick of bidding for money to fund projects from Whitehall through a multitude of different pots.
"Giving Greater Manchester a single pot of funding could be a genuine gamechanger as the region would no longer be constrained in how it spends the cash it gets from government.
"We also welcome the announcement that Greater Manchester is to be one of 12 new investment zones, and that the region is to benefit from the second round of city region sustainable transport settlements.
"This combination of investment and increased financial authority – and autonomy – is one that Greater Manchester will grab with both hands for the benefit of its citizens.
"Given that the North West applied for, and was denied, money from the Levelling-up fund, there is a strong feeling in the North West – freely expressed here at MIPIM - that the previous resistance within central government to hand over more powers to the region reflects the government’s lack of enthusiasm for truly ceding control.
"However, with the cash for Levelling Up Partnerships (£161m for mayoral combined authorities) it is to be hoped that this Budget is the start of a new regime whereby the people closest to, and best informed about, their region are able to decide how to spend their funds without interference from central government."
Siemens plc
Chief executive Carl Ennis said: "Growing regional economies is the key to building national prosperity. The UK is a patchwork of different devolution arrangements, which can often be confusing for businesses and hinder growth and productivity. Giving more power and funding to metro mayors to promote regional growth is a positive step towards delivering on the levelling-up agenda.
"What we need to see now is a national framework, which helps to stop regions unnecessarily competing against each other. Not every region can aspire to be a life-sciences cluster, for example, and instead, local growth plans should build on existing strengths.”
"Decarbonising our regional economies, particularly in the North West and North East, will be critical to the success of the UK achieving its net zero target. This is not a technology challenge but a policy one, and we’ve long been calling on the Government to deliver an integrated strategy that will enable the UK to lead on decarbonisation.
"The new investment zones represent a step in the right direction and will create a framework for future Government funding to follow. Our universities are beacons in our regional economies and are best placed to drive innovation and wealth creation locally, and maintaining the current level of R&D tax relief avoids the Government giving with one hand and taking with the other."
Secure Trust Bank Commercial Finance
Regional managing director Paul Johnston said: "Greater financial support for the Liverpool and Greater Manchester business communities will always be welcome, but it’s important that these investment zones are not a one-size-fits-all approach.
"Our strengths in Liverpool and Manchester are different to those of other regions, and this also applies on a business-by-business level.
"The challenges and opportunities facing each management team are completely different and investment should always go beyond just the cash – the support, guidance, and close contact between management teams, investors and their funders can be decisive in whether that business fulfils its potential or not."
Hill Dickinson
Head of employment, education and pensions Jeff Middleton said: "The pandemic caused people to reflect on what they really want out of life. This led to many over 50s deciding to retire early.
"These tend to be high earners who have built up enough in pensions and savings to be able to afford early retirement. They simply do not want to return to working full-time on-site. They don’t need extra money, so there is very little financial incentive for them to return to work. Early retirees are much more likely to be tempted back into working part-time and flexibly.
"The promised reforms to flexible working do not go far enough. Nobody wants to start a new job, then wait two months for a decision on their flexible working application. If they are really serious about getting early retirees back into work, the Chancellor should have committed to require job adverts to state the flexibility on offer up front."
BrightHR
Chief executive Alan Price said: "Employers should take particular notice of his 'E for Employment' section, which aims to encourage more people to work and reduce the amount of long-term sickness absence.
"To do this, the Chancellor plans to introduce a new apprenticeship called 'returnership, aimed specifically at over 50s. Whilst further details of the scheme are yet to be released, employers may need to consider the type of contract, pay and benefits such workers will receive.
"Employers should also recognise that the wants and needs of over 50s may vary from younger workers, so put measures in place to directly meet their expectations. For example, they may be more in favour of part-time and job-sharing arrangements; phased retirement options; enhanced family-related leave and pay, including grand-parental leave; private health schemes; and increased pension contributions.
"Similarly, with more support to encourage disabled people and those with long-term health conditions to return to work, employers should review the measures they have in place to ensure the workplace is accessible and inclusive for all. Whilst reasonable adjustments should be tailored to each individual, employers can implement common adjustments which will benefit a majority, as well as utilise positive action tools to pro-actively appeal to these people.
"The introduction of enhanced childcare support will be a great relief for working parents. But, since the first of the proposed measures aren’t expected to take effect until next April, employers should assess the support they can offer to employees now, to ensure they remain in, and return to, work. Providing adequate and effective support to working parents can help reduce the gender pay gap, improve diversity and boost productivity, performance and morale. In turn, this will enhance businesses reputations and contribute to a better recruitment and retention strategy."
Hurst
Tax partner Adrian Young said: "Much of Jeremy Hunt’s speech was focused on what he termed his four pillars of productivity: enterprise, employment, education, and ‘everywhere’.
"But, despite the unveiling of this novel plan, his statement thankfully did not deliver any unwelcome surprises. That’s quite a relief, and I think he has listened to business leaders’ concerns about the turmoil of last year and the overriding need for stability in uncertain times.
"Certainly, the key measures announced today have been known for some considerable time, which has given businesses time to adjust.
"These measures include an increase in the corporation tax rate from 19 to 25 per cent for businesses with more than £250,000 of taxable profits. As expected, this rise is tapered between the lower and upper rates for companies with profits exceeding £50,000 but below £250,000. And businesses with taxable profits below £50,000 will continue to pay at the current 19 per cent. This all takes effect from April."
Greater Manchester Chamber of Commerce
Head of research Subrahmaniam Krishnan-Harihara said: "After the market reaction to last September's mini-budget and the rather sombre note Chancellor Jeremy Hunt struck in his Autumn Statement, it was apparent that today's Spring Budget had to strike a balance between measures for enabling business growth and maintaining fiscal stability.
"Positioned as a 'Budget for growth', today's announcements were an attempt by the Chancellor to deliver a more upbeat tone using the additional headroom in public finances.
"The macroeconomic environment for this Budget is best described as uncertain. The British economy displayed unexpected resilience and grew by 0.3% in January, albeit after an equally unexpected 0.5% decline in December 2022.
"The UK may be past peak inflation but wage inflation and input prices remain concerns for businesses. Consequently, businesses do not have the confidence to commit to capital investment projects. Business investment in the UK has lagged behind other OECD countries for nearly a decade.
"At the same time, the UK labour market remains tight: unemployment is low, employment increased by 0.1 percentage points in the three-month period between November 2022 and January 202 and the estimated number of open job vacancies still remains high at 1.12 million."
SJD Accountancy
Technical compliance manager Joanne Thorne said: "The self-employed contractors will be pleased to hear the Chancellor confirm the 50% increase to annual pension allowances from £40,000 to £60,000 alongside the abolishment of the lifetime allowance.
"Recent cuts to benefits such as dividend tax allowances have left many looking at the most efficient way to manage their tax liabilities. Workers of this type are traditionally reluctant to lock money away into a pension, but this move will undoubtedly act as a good incentive to invest more in a personal pension, without concerns about tax liabilities.
"While It’s also positive to see the replacement of the super deduction tax with a policy allowing every pound invested by businesses into IT equipment, plant or machinery can be deducted in full from a company’s taxable profit, the planned Corporation Tax increases due to come in from 1st April will still be a significant tax liability for the self-employed.
"The Chancellor’s attempt to mitigate the impact of tax rises and encourage investment is good to see, but there are concerns that today’s announcements still don’t go far enough to ensure the self-employed community is onside – especially with a General Election on the way."
AspinallVerdi
Andy Delaney, director and head of the Liverpool office, said: "We welcome the £500m-plus investment announced for regeneration and levelling up projects. The potential of 12 Investment Zones funded by £80m each over the next five years including those for Liverpool and Greater Manchester and focused on key industries and universities is a proven formula for success.
"We’ve worked on multiple investments from both the private and public sector throughout the North West. As always the devil is in the detail, but it is imperative that the government now starts delivering on-the-ground."
Bruntwood and Bruntwood SciTech
Jessica Bowles, director of strategic partnerships and impact at Bruntwood, said: "Improving resilience cannot be done without a ‘place’ perspective. For this reason, the Government’s reworked commitment to Investment Zones is welcomed, particularly in Greater Manchester, Liverpool City Region, West Yorkshire and the West Midlands, which have huge potential due to their existing innovation and knowledge hubs aligned to their leading universities. We also hope that the Government will move quickly on establishing a similar scheme in Scotland, as promised.
"We believe this clustering with universities is key, as their strengths can be used to support regeneration and provide tailored responses to local issues ensuring they have the greatest impact and catalyse change. By doing this, people can come together, generate ideas, build on key strengths and create more productive clusters, and ultimately contribute to the wider levelling up agenda."
Dr Kath Mackay, director of life sciences at Bruntwood SciTech, added: "The fresh commitment to quantum computing and artificial intelligence is a major boost, with the publication of a clear 10-year strategy broadly welcome. The £2.5bn investment, including the development of a UK-wide AI sandbox and annual prize funding, has the potential to significantly make the UK a world leader in this sector, and build on those already well established in this space such as Glasgow and Manchester.
"What an opportunity this is to galvanise improvements in healthcare through AI and quantum and for the life science industry to collaborate with such businesses as the lines between science and tech continue to come closer together to create new emerging technologies."
Primas Law
Christopher Love, head of restructuring and insolvency, said: "There was some good news for businesses in today's Spring Budget, with the Chancellor confirming that the super deduction tax would be replaced with a policy allowing every pound invested by businesses into IT equipment, plant or machinery to be deducted in full from a company’s taxable profit.
"While the UK continues to narrowly avoid recession, more incentives and tax benefits for businesses are much-needed to help bolster UK enterprise and support businesses during times of economic turmoil.
"The extension of the Energy Bill Relief Scheme for a further three months could also help as many as 350,000 small companies avoid becoming insolvent this year - another positive for UK business. This avoids the cliff edge which had been anticipated however a long term solution is still required.
"The planned increase to Corporation Tax from 1st April will impact businesses from the new financial year as the Chancellor seeks to boost tax receipts after some leaner years during Covid. It will be interesting to see how the government continues to support businesses and it’s imperative they are given the opportunities needed to flourish - especially during these challenging times."
Greater Manchester Business Board
Chair Lou Cordwell said: "The announcements in today’s Budget represent another hugely significant step forward for Greater Manchester. The new devolution deal brings with it greater local control of skills and transport infrastructure, areas that businesses and investors often describe as their biggest priorities.
"The deal breaks new ground for technical education in Greater Manchester, allowing us to build a fully integrated skills system that responds to the needs of employers and provides clear career pathways for our people. It also brings us closer to the London-style transport system that will better connect people with opportunities.
"An Investment Zone for Greater Manchester is another promising opportunity. We look forward to working with Government to develop a plan, ensuring the £80m of new investment is deployed effectively.
"We will continue to work closely with Innovate UK on delivering the Innovation Accelerator programme. Our Innovation Greater Manchester partnership is committed to developing an innovation ecosystem that creates high-quality jobs, productive companies and inclusive growth.
"Devolving further powers, funding and accountability to the city-region level can help us create an environment where businesses can prosper."
N8 Research Partnership
Director Dr Annette Bramley said: "We welcome the government’s support for Investment Zones, particularly the recognition of the importance of universities across the North of England in unlocking the potential of key future sectors for our economy and achieving net zero.
"The brilliance of our northern universities was recognised in this budget through the announcement of a new national AI award - the Manchester Prize - named after The University of Manchester’s invention of the world's first stored program computer.
"Our universities are committed to deploying research excellence to improve the world around us – and it is this dedication that will ensure that Investment Zones drive productivity and create new innovation ecosystems across our region. We look forward to working with our partners across industry and government to make that happen for the benefit of the whole of the country."
Shoosmiths
Partner and rail lead Michelle Craven-Faulkner said: "Surprisingly, there was no major direct mentions of rail in today’s statement, unless you include references to the extension to the City Region Sustainable Transport Settlements - worth £8.8bn over the next five years.
"We await further detail on whether, from a rail point of view, these settlements will be in addition to the Integrated Rail Plan settlement or form part of the same, particularly with regards to northern local authorities. There are other regions in the process of working towards devolution and so it will be interesting to understand how they will be able to access these settlements or whether at this stage it’s just open to those with existing devolution deals.
"With major rail related announcements potentially mooted before Easter, time is now ticking for the government to provide clarity over the future of the rail network. This includes the chosen location of Great British Railway’s HQ, Midland Main Line electrification and also the East Coast Main Line power upgrades.
"A statement is also needed confirming which elements of the Integrated Rail Plan will continue and when, alongside the long-awaited publication of the Rail network enhancements pipeline."
BDO
Partner and head of the North West Ed Dwan said: "The Budget answered some of the calls from North West businesses, as the region fared relatively well as part of the overall ‘levelling up’ agenda.
"As part of our bi-monthly survey of 500 mid-sized businesses, nearly a quarter told us that they wanted to see tax incentives in the region. With Greater Manchester and the Liverpool City region set for an opportunity to bid for funding for a new Investment Zone, this could come to fruition.
"Businesses were also hoping for a roadmap to reduce corporation tax rates. Instead, the Chancellor said that companies could offset 100% of investment in IT, equipment, plant, and machinery in the UK against taxable profits, stating that it’s the most generous capital allowance scheme of any advanced economy. That said, there are practical barriers as businesses still grapple with supply chain challenges. As a result, people may struggle to get hold of the kit they want to invest in.
"All year round, businesses tell us that access to skills is their biggest challenge. Hopefully, new initiatives and incentives will open up a deeper talent pool by attracting returners and working parents back to work. Support with childcare costs will also be well received by business leaders as a way of helping employees with the cost-of-living crisis. One-in-five North West businesses have already been trying to plug this gap, by providing other workplace benefits such as support with childcare costs for employees."
NP11
Chairman Sir Roger Marsh said: "The North of England is a hotbed of innovation and invention, so I’m delighted the Chancellor is backing our region by locating six of England’s eight new investment zones here in the North.
"The confirmation of £80m funding per investment zone over the next five years will help the North build on its internationally significant strengths in industries such as clean energy, life sciences, advanced manufacturing, digital and creative industries, ensuring our region plays its full part in building a Global Britain that is known the world over as a science and technology superpower.
"Although we warmly welcome the significant support for the North’s innovation and R&D capabilities announced today, investment in academic institutions and research centres must go hand in hand with support for industry-led innovation to truly supercharge business growth and increase international trade.
"Likewise, to deliver on our promise of levelling up the North’s economy, we must consider how we can support emerging innovation clusters in all areas to become growth engines for the future, as well as ensuring those that play an important role in supporting local economies and job creation continue to thrive."
Love Energy Savings
Founder and CEO Phil Foster said: "While there will still be support in place for businesses post-April thanks to the Energy Bills Discount Scheme, this package simply doesn’t go far enough to help SME businesses which have all felt the devastating impact of the energy crisis.
"The Federation of Small Businesses warned this week that up to 350,000 SMEs could be at risk of collapse without further support. After the Chancellor's speech today, many small business owners will feel like they may as well switch the lights off for good.
"The lack of new support means that businesses need to keep doing everything they can to drive down their bills. With wholesale rates stabilising, considering a switch to a fixed rate contract is something businesses should absolutely consider to avoid being stung by fluctuating charges."
MHA Moore and Smalley
Tax partner Tony Medcalf said: "After last year’s succession of headline-grabbing budget statements, each with its own overhaul of UK tax policy, many businesses will welcome the more cautious approach of chancellor Jeremy Hunt, even if there is relatively little to excite them.
"The focus on encouraging more people back into the workplace, particularly through pension tax incentives and enhanced childcare, will be welcomed by employers during a period of significant labour market pressures.
"However, as expected, the chancellor resisted calls from within his own party to cancel the increase in corporation tax to 25 per cent, instead opting for a raft of alternative measures to incentivise business growth.
"The replacement of the super deduction which allowed companies to deduct 130 per cent of qualifying investment from profits, with a new 100 per cent investment deduction, is important news for companies investing in growth, especially when twinned with the £1m Annual Investment Allowance and the new £27 tax credit for every £100 spent on research and development for qualifying R&D intensive companies.
"The announcement of 12 new low-tax investment zones will also have significant potential benefits for companies in certain regions and sectors, although it’s important this initiative is rolled out so further areas of the country can benefit as the Levelling Up agenda continues to gather pace."
Telcom
Chief executive Shaun Gibson said: "It’s great to see the Government investing further in these northern regions, recognising the talent we have in the north’s tech, academic and creative industries.
"But it also needs the digital infrastructure in these major northern metro areas too. Ensuring we have hyper fast digital connectivity across Greater Manchester is crucial to achieving levelling up. We will be working closely with Government locally to support those key growth sectors - technology, creative industries, life sciences, advanced manufacturing and the green sector.
"The first round of Levelling Up funding was around transport and infrastructure but without making sure that we have the digital infrastructure in place we won’t achieve that level of acceleration we need in research and development that the Government wants to achieve through these new Investment Zones."
The Growth Company
Jon-Paul Rimington, managing director of GC Education and Skills, said: "We’re excited about the potential of the Chancellor’s announcement of more support for people with disabilities to access voluntary employment support as well as the creation of 'Returnerships' for people over 50.
"GC Education and Skills has more than 30 years’ experience in training and education and is rated as one of the ‘Top 50 Training Providers’ in the country. We have had great success in bringing people back into a learning environment and preparing people for the modern workplace."
Michelle Leeson, managing director of Employment, added: "It can be incredibly difficult for those that are furthest from the labour market to consider returning. By removing barriers to learning and employment, whether that improving people’s confidence, developing job search, CV writing and application skills, or more complex needs which may be holding them back, it is essential we recognise the specific needs of individuals for them to reach their full potential.
"The Chancellor has identified that we have vast amounts of potential going untapped in modern Britain and we are prepared to be part of the solution to that."
Pura
Founder Guy Fennell said: "I welcome the Chancellor’s decision to extend the Climate Change Agreement scheme so that businesses in the UK that introduce energy efficiency measures are rewarded with tax relief.
"These tax breaks are crucial in incentivising British industry to become more sustainable and speed up the process of decarbonisation in all areas of the economy.
"It’s also very pleasing to see the introduction of tax boosts for smaller and medium enterprises for money spent on Research and Development. This will give SMEs the chance to reinvest credits earned through R&D spending, in green technology and continue to work towards minimising carbon output so that net zero targets can be achieved."
Liverpool Chamber
Chief executive Paul Cherpeau said: "Businesses wanted to see a Budget that would deliver greater clarity and a more stable economic environment to help them move ahead with their future plans and boost long-term growth. Elements of today’s announcement will be most welcome, but unfortunately it leaves many concerns unresolved.
"Positive forecasts around the reduced likelihood of a recession and a significant drop in inflation are clearly welcome, but to maintain that position, businesses must have the capacity to find fresh opportunities to create sustainable growth.
"A new investment zone could have a significant impact on the local economy and allow Liverpool to expand its status as a science and technology powerhouse, boosted further by improved investment credits for creative and life sciences firms. We look forward to working with local government and the private sector to identify a location and framework to support job growth across the city region.
"The Liverpool City Region needs even greater local control to determine its own economic destiny. It is good to hear that the LCR Combined Authority will ultimately follow Greater Manchester in receiving additional spending powers and more autonomy in future."
Kinaxia Logistics
Chief executive Simon Hobbs said: "The Office for Budget Responsibility’s forecasts about the UK not technically entering a recession and inflation more than halving by the end of 2023 are pleasing, but our logistics industry has seen volumes drop off in the first quarter of 2023.
"This drop-off is temporarily concealing that fact that our sector still faces a labour skills shortage in both its driver and warehouse populations. So, the support in childcare costs will hopefully encourage some new full-time or part-time entrants to our industry as may the new ‘returnerships’ programme for over-50s. It’s equally as pleasing to see some support given to those with disabilities.
"The huge increase in corporation tax has been partly and temporarily reduced by the ability to offset investments, but the detail behind this has yet to be seen. The fuel duty freeze is a help to our customers, and hopefully the extension of the energy price cap may encourage people to spend a bit more as we enter warmer months – but there wasn’t much in the Budget to restore consumer confidence.
"At least the continual and costly deterioration of our roads was recognised with the increase of £200m in pothole repairs. Overall, not much there to help our logistics sector."
FSB
Michael Sandys, area leader for Liverpool City Region, said: "Any new funding to Liverpool City Region and the north is positive and to be welcomed, but we must consider the significant capacity pressures and economic challenges faced by local authorities, as seen during the pandemic. It will be important that we work together to ensure these schemes, and the funding that comes with them, are delivered as effectively as possible for small businesses and their employees.
"Investment zones for Liverpool City Region and Greater Manchester are likely to boost inward investment but we would welcome further clarity on how they will operate and work together to benefit existing businesses - and they must avoid creating an uneven approach to enterprise and economic growth within and across regions.
"The Chancellor had set high expectations for supporting small firms during these challenging times, but today’s Budget will leave many feeling short-changed. The disappointing lack of new support in core areas proves that small firms are being overlooked and undervalued. Budgets are about tough choices. With today’s billions being allocated to big businesses and households, the UK’s 5.5million small businesses and the 16 million people who work for them will be wondering why they have been missed out."
University of Salford Business School
Lecturer in econmics Dr Mohammad Mahbubur Rahman said: "Both demand-pull (e.g., COVID support) and cost-push (e.g., Brexit, Russian-Ukraine war, etc.) have caused the current suffering from high inflation.
"In this situation, any further demand-pull policies (e.g., income tax reduction, salary increases, etc.) without significantly impacting economic growth would cause further inflation. Rather, reducing cost push policies, such as increasing cost and production efficiency by reducing disguise unemployment and increasing skilled labour supply, will enhance economic growth and reduce inflation.
"Jeremy Hunt's Spring Budget should be welcomed, as it focuses on policies regarding supply-side enhancements. Lowering business tax, removing barriers that stop people who want to from working, reforming the childcare system, energy bill and fuel cost supports, and £400m of Levelling Up funding, including the creation of 12 new investment zones, are all about supply side boosting policies, which will increase the economic growth with declining inflation. Specially, childcare support will also reduce disguised unemployment, increasing the productivity of existing labour.
"However, for long-term sustainable growth, the country needs a significant investment in higher education to increase skilled labour. As we know, the NHS has a significant shortfall of doctors and nurses. This Budget did not go far enough to tackle that shortfall. Although the current unemployment rate is less than 4%, the actual rate will be much higher if we include inactive and disguised labour in the labour force. This Budget does not have any significant policy recommendations for reducing disguised unemployment."
PM+M
Managing partner Jane Parry said: "The Government is treading a fine line between a ‘technical recession’ and minimal growth so anything that would have caused even the tiniest of negative shockwaves was never going to happen – especially as the economy is still recovering from last year’s ‘Trussonomics’ debacle.
"The OBR’s announcement that it has cut its inflation forecast for the end of this year to 2.9% and that the spending deficit improved after a rise in tax receipts, mainly due to higher than expected inflation, certainly gave the chancellor some breathing room as he will have as much as £30bn spare.
"I’m sure some of it will be used to cover the billions that will be needed to pay for the newly announced 30 hours of free childcare for all children over nine months as well as the other increased child support initiatives. However, my feeling is that he will probably ringfence the rest for some major spending announcements in the run up to next year’s general election."
TalkTalk
Chief executive Tristia Harrison said: "For levelling up to work, local leaders need to be able to provide local solutions to grow the economy and answer their specific local challenges.
"So today’s measures are a welcome step in giving more responsibility for local economic development to local authorities and more certainty via multi-year funding settlements.
"As a proud Greater Manchester based business, we look forward to continuing to play our part in growing both the local – and national – economy.
"Programmes such as ‘returnerships’ for over-50s will help to bring much-needed skills back into the workforce; and as a tech-based business, we also welcome the increased investment in AI and innovation accelerators, providing funds for both the businesses and job creation of the future."
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