Amid ongoing turmoil in the markets at the time of typing, it is clear that the recently appointed Chancellor of the Exchequer, Kwasi Kwarteng’s ‘mini-Budget’ announcement – delivered on Friday 23rd September – has already proved notorious in many quarters. 

Elements of the “Growth Plan” statement that were of particular relevance to UK businesses ranged from enhanced support measures to confirmation of new “investment zones”. 

The overall response from key industry stakeholders has been mixed. So, what exactly have they been saying about the new Government’s proposals that are designed to drive economic growth? 

“A good news day for British business” 

One observer who certainly had good things to say about the Growth Plan was the Confederation of British Industry (CBI)’s Director-General, Tony Danker. 

Describing the announcement day as “day one of a new UK growth approach”. Signalling his approval of the Government’s proposed planning and infrastructure reforms, Mr Danker added, “we must now use this opportunity to make it count and bring growth to every corner of the UK.” 

Also giving a thumbs-up to the announcement was the Institute of Directors (IoD)’s Chief Economist, Kitty Ussher. The former minister in then-Prime Minister Gordon Brown’s Government said Friday had been “a good news day for British business”, reasoning that “taken together with the energy bills relief scheme, the package as a whole will make it easier for businesses navigating a challenging economic environment in the coming months.” 

She said it had been “a particular relief” that the Government had opted to reverse the increase in employer’s National Insurance. Ms Ussher was also thankful for the announced simplification of the IR35 rules and the cancellation of the planned rise in Corporation Tax. 

Concerns were raised, however, about the affordability of the plans 

As good as the wholesale interventions outlined in the Growth Plan sounded to many observers, were they responsible, given concerns about Government debt? Many asked that question, with it being noted that the Chancellor had not asked the Office for Budget Responsibility (OBR) to carry out its usual independent assessment of the proposal’s impact on the public finances.

Dr Gordon Fletcher, a retail and economy expert at the University of Salford Business School, summed up the mood among the critics. He stated that the Growth Plan “feels like a series of uncosted party pledges being made going into a general election rather than a costed, balanced management of national finances being made by a responsible government.” 

The poorly targeted measures concerning those most in need also annoyed Dr Fletcher, who pointed out that the plans “primarily benefit those probably least concerned about cost-of-living increases within their households, and those businesses most benefitting from the current situation.”

Meanwhile, the manufacturers’ organisation Make UK’s chief executive, Stephen Phipson, praised “positive measures” in the announcements but warned of looming “stormy waters”. He highlighted that “this is the sixth growth plan in little over a decade which has seen ever-increasing political uncertainty. This has resulted in zero certainty for business, the most important thing it needs.” 

The workers’ union GMB was somewhat more scathing of the plans, with general secretary Gary Smith stating that “we need to bring inflation under control and build a modern manufacturing base that creates good jobs at home and enhances our national security. Instead, the Chancellor has chosen to pour money into the hands of rich multinationals.” 

Allow our accounting experts to help your business face the challenges of the 2020s 

Whatever you made of the Growth Plan announcements, you will certainly wish to ensure your business is strongly placed to navigate an undoubtedly extremely challenging economic climate. If so, our team here at TS Partners stands ready to assist with the highest standard of digital accountancy and QuickBooks assistance in Devon and Somerset. 

Simply reach out to your nearest TS Partners office for further advice, guidance and help tailored to your business situation so that you can be in a better position to succeed.  

 

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