UPDATE: Liverpool business leaders are reacting to the latest Budget delivered by Chancellor Rachel Reeves, describing it as a “damp squib” but finding solace in its lack of major disruptions. The screening, held at the luxurious Hope Street Hotel earlier today, gathered around 30 attendees from various sectors, who seemed relieved by the overall message of stability.
The Budget, which was previewed through an accidental early release of forecasts by the Office for Budget Responsibility (OBR), included announcements on tax rises, business rates, and electric vehicle taxes. Despite low excitement, attendees expressed that things “could be worse.” The atmosphere was notably subdued compared to the raucous debates in the Commons, with only a few weak cheers for key announcements.
Among the highlights, Reeves confirmed the extension of business rates retention pilots in regions including Liverpool City Region until 2029 and announced that training for under-25 apprenticeships will now be “completely free for small and medium-sized enterprises.” These measures aim to provide some breathing room for businesses that have faced significant pressures in recent years.
Following the speech, a Q&A session led by Liverpool Chamber of Commerce CEO Paul Cherpeau revealed mixed feelings among the attendees. Phrases like “lack of ambition” and “ship-steadying” were commonly mentioned, reflecting a sense of disappointment that more significant changes were not introduced. However, many in attendance noted that avoiding major disruptions, especially after last year’s rise in National Insurance Contributions, was a positive outcome, allowing for potential investment decisions to resume.
Sean Keyes, CEO of civil engineering firm Sutcliffe, expressed satisfaction with the Budget’s predictability. He emphasized the need for the government to address pressing issues, such as achieving the ambitious 15,000 housebuilding target, which was notably absent from the Chancellor’s address.
Alison Lobb, managing partner of law firm Morecrofts and chair of the Chamber, voiced her disappointment over the lack of “big news” and highlighted the unaddressed funding issues for the justice system, which is currently facing significant backlogs.
A quick informal survey conducted after the Q&A revealed that only one attendee felt worse after the speech, while several others reported feeling “neutral” or “positively neutral.” The overall sentiment was one of cautious optimism, as attendees recognized the need to delve into the finer details of the Budget to fully understand its implications.
As the dust settles on this Budget announcement, business leaders are now tasked with navigating the complexities of the new proposals. The critical next step will involve analyzing the fine print to determine how these measures will impact their operations and the broader economic landscape in the UK.
While the Budget may have underwhelmed, the government faces mounting pressure to articulate a clear vision for economic growth moving forward. The reactions from Liverpool’s business community underscore a pivotal moment for local industry, where stability is both a relief and a call to action.
