Business West, the region’s biggest business organisation, was disappointed with the lack of capital investment promised by the government for the West of England.
Policy manager Claire Ralph said: “Some minor funding has been allocated to the West of England Combined Authority for local transport improvements through the Transforming Cities Fund.
“Elsewhere it was thin pickings – with our regional leaders having to bid against other English regions for a share of the new £4bn Levelling Up Fund for local infrastructure projects to support our area’s economic recovery. We hope this doesn’t all ‘head North’.”
She also extensions to grant support for businesses whose premises remain closed under high-level tiers was absent despite the end of the national lockdown next week.
“Whilst most public sector workers outside the NHS have their pay frozen, the 2.2% increase to the National Living Wage and similar increases for younger workers and apprentices from April 2021 will further strain business margins in the private sector,” she added.
Business West, which runs Bristol Chamber of Commerce, also said given Brexit was just six weeks away it was surprising the Chancellor made no mention of it – “despite the subdued growth figures assuming an EU trade deal”.
“As we expected, the public finance position for this year and into the future made for stark reading and confirmed the degree of economic shock our region has experienced due to Covid-19,” said Ms Ralph.
“The UK’s economy is only expected to return to pre-pandemic levels two years from now, much slower than we previously hoped.
“The government’s plan for paying for the crisis will emerge in the spring but at the moment the Chancellor is keeping businesses very much in the dark.”
West of England Mayor Tim Bowles, pictured, welcomed the commitment to “levelling-up” regions, saying that the region would benefit from many of the measures announced by the Chancellor. 
These included, as one of eight city regions across England, a share of £2.5bn through a five-year consolidated intracity transport settlement from 2022-23. This unspecified amount would be invested in the MetroWest transport scheme to improve rail services across Bristol and the surrounding region.
There would also be funding for a feasibility report into re-opening St Anne’s Park railway station in east Bristol, which was last used more than 50 years ago.
Campaigners say the move would help commuters travelling to Bristol, Bath and Keynsham and relieve congestion on the A4.
Mayor Bowles said: “The new £4bn Levelling-up Fund is excellent news. This is something that I have been calling for, alongside my metro mayor colleagues, as we understand the benefits of having a local focus on prioritising projects that can have a positive impact in our communities.
“I will be working with the government to help implement plans in the West of England as quickly as possible, and add them to the package of measures I have already announced as part of our West of England Economic Recovery Plan, to ensure that we secure decent, well-paid jobs and come back strongly from the pandemic.”
West of England Local Enterprise Partnership (LEP) chair Prof Steve West added: “It was encouraging to hear the Chancellor emphasising the importance of taking a place-based approach to our local areas to help build back greener.
“Through the Local Enterprise Partnership, we look forward to working with the government on the detail; to help ensure that the expertise and insight of our region’s businesses is applied to prioritising investments from the Levelling Up Fund and the UK Shared Prosperity Fund.”
Andrew Hodgson, senior partner in global accountancy group KPMG’s Bristol office, pictured, also praised what he called the Chancellor’s “clear commitment to levelling-up the country” with a financial boost for regions, saying investment in infrastructure in Bristol and the wider South West was long-overdue. 
But he warned: “It remains to be seen how the bidding process for the pot of money will work. There’s a risk that it could create competition between regions, rather than the collaboration we desperately need. Businesses will also be wondering how this relates to the West of England’s devolution agenda and leadership on the ground to ensure successful bids contribute to real regional economic transformation.
“Combining the two critical agendas of a low carbon focused infrastructure-led economic recovery from Covid-19 with levelling up certainly has the potential to be a win-win plan.
“This is particularly the case for Bristol – the ‘green capital’ – where businesses and communities are bursting with ideas to help our city be more sustainable.”
Peter Ball, a partner in the Bristol office of national accountancy group Smith & Williamson accused the Chancellor of kicking the can down the road with his Spending Review.
“At some point we will have to address the historic rates of government borrowing, which means two inevitables – tax rises and spending cuts.
“While today isn’t the right time for tax rises, they are likely to be on the horizon for 2021 so individuals and businesses should reflect on their tax planning now before any changes are made.”
Mr Ball, pictured, said for companies, a tax hike relating to investments including property was possible. 
“We could see the rate rise significantly from the current 19%. The Chancellor may also consider changing the tax rules for companies so that property gains in companies are taxed on shareholders personally and subject to higher rates of personal Capital Gains Tax (CGT), rather than lower rates of corporation tax, possibly with an acceleration of when the tax has to be paid.”
For individuals, the pinch could be felt by those passing wealth to loved ones.
“It’s possible the government could abolish the ability to make a gift to someone of unlimited value and it be exempt from inheritance tax should you live for a further seven years,” he said.
“Passing property or other investments to children or grandchildren could also see a CGT hike to up to 45%, representing an alignment with the current income tax rates.”
