Bristol businesses will welcome Chancellor Philip Hammond’s focus on investment in the Autumn Statement, particularly in areas where growth pressures are highest, according to Business West.
Phil Smith, pictured, managing director of the region’s largest business organisation, described the statement as “a sombre, not flashy, affair” which reflected the national mood of economic and business uncertainty. 
But he added: “We think the Chancellor judged the tone right, [and] also delivered on the substance: focusing on increased infrastructure investment in critical areas for our future economic health, even whilst our overall financial position is weakening.
“To face the future confidently, the Chancellor has made some key announcements to reward economic success: notably in transport, housing, hi-tech and supporting local growth. Our growing and dynamic businesses will welcome these solid steps at a time when confidence needs bolstering.”
He also welcomed the extra £2.3bn housing infrastructure fund to help bring forward infrastructure “in areas of high demand”, on a competitive basis.
“Our region is undoubtedly an area of high housing demand, and this money offers a golden chance for our local leaders to increase the number of much needed homes,” he said.
“To do this, though, our local leaders also need to be prepared to be ambitious and take on some of the entrenched voices against housing developments – if they can’t there is a danger that the money will go elsewhere.
“The greater flexibility on affordable housing should also make it easier to deliver more homes in the right places.
He pointed out that, given the challenge of Brexit – a major change for the UK economy, and potentially a major shock if negotiations go off course – future growth predictions for the UK economy had been downgraded and fast deficit reduction has been pushed into the long grass.
Business West, which also runs the Bristol Initiative, had warned ahead of June’s referendum on the challenges that leaving the EU would bring to businesses in Swindon and across the West of England.
Mr Smith added: “In this context, the budget was not a flashy affair. The Chancellor avoided long lists of tweaks to tax policy and sought to focus on improving the fundamentals.
“Business will welcome this approach; a budget should be about long-term measures, not short-term headlines. In particular, business will welcome the focus on infrastructure spending, including additional borrowing to invest in some of the key obstacles to growth that many local businesses face.”
He said much had previously been written about the need to invest more in infrastructure.
“For our region the infrastructure deficit is glaring, with more investment needed, particularly in transport and housing, and obvious economic benefits that would come from reducing housing costs and congestion and improving connectivity,” he said.
“The delay of implementing full rail electrification into Bristol and long time lines in tackling obvious traffic bottle necks, underlines that the UK has for far too long failed to prioritise investment in these economic fundamentals, particularly if you are outside London. The shift in the government’s emphasis is overdue.”
He described the new wave of public investment – including the £23bn of spending announced on innovation and infrastructure over the next five years via the new National Productivity Innovation Fund – as “eye-catching”.
“The government says it will target this spending at areas that are critical for productivity: housing; research and development (R&D); and economic infrastructure,” he added.
“In addition the Chancellor floated the idea of raising long-term UK infrastructure spending levels to between 1% to 2% of GDP per year. This is in stark contrast to the rapid cuts to infrastructure spending after 2010, and is very welcome news to help counter current economic uncertainty.
“Within this increase includes additional money and better focused policy on housing and transport.”
He also welcomed the additional £1.1bn by 2020-21 in new funding to relieve congestion and deliver much-needed upgrades on local roads and public transport networks, the extra £191m for Local Enterprise Partnerships (LEPs) across the South West and new borrowing powers for metro mayors in newly devolved areas such as the West of England.
“There were also new statements on improving digital communications and broadband,” he said. “The government will invest over £1bn by 2020-21 targeted at supporting the market to roll out full-fibre connections and future 5G communications. This will be good news for those areas which have existing coverage, but may not target the ‘not spots’ of some of our rural areas.
“High-knowledge and tech firms will also be cheered by an additional £4.7bn by 2020-21 in R&D funding. This extra £2bn a year by the end of this Parliament is an increase of around 20% to total government R&D spending. Also welcome was news that the government would put £400m into the British Business Bank to help new start-up tech firms build their future growth without having to sell up to major foreign firms.
“Finally, government has also started to put some money behind its emphasis on growing UK trade. It is doubling UK export finance capacity to overcome some financing obstacles. However, whilst welcome, this needs to be followed on with a wider suite of measures to make it easier for small and medium firms to overcome the range of challenges they face when breaking into new markets.
“Export finance is often good for larger companies, but is less pertinent for the range of first-time exporters that the UK will need to spur its new trade ambitions. We look forward to future action here.”
