Business in Caerphilly County Borough has responded positively to the UK Government’s 2012 Budget.
Andrew Diplock, Chair of Caerphilly Business Forum and Managing Director of the consultancy UES energy, said: “Despite most of this Budget being leaked to the press beforehand we still need to wait for the analysis before we can see any devil in the detail.
“My initial thoughts are the Chancellor had little wriggle room with the economy being squeezed from all sides but he’s made some concessions to businesses such as the plan to reduce corporation tax which is welcomed.”
“There are a couple of points that relate to the South Wales valleys specifically. I’m encouraged to see he’s not let the electrification of the Valleys Lines slip from the agenda but we really need more detail on this before we celebrate. His announcement that they would be working with the Welsh Assembly on this project doesn’t in itself represent much of a commitment.
“He’s also talked about Michael Heseltine reviewing how the Government can work better with private sector to grow economy. There are many opportunities for the private sector to pick up roles from the public sector following the cut backs. This would not only improve efficiency but also boost local business.
“In Caerphilly we’re already working very closely with the local authority. Of course, we’ll welcome any further ideas the government has to offer, but perhaps, locally, we can be a good model for the review.”
Jon Lewis, Chief Executive of Direct Healthcare Services, based on Caerphilly town’s Western Industrial Estate, said: “We welcome those concessions he’s made to businesses of course, such as cutting corporation tax and freezing fuel duty and Vehicle Excise Duty for hauliers, though some had dared hope they would be cut too.
“While the overall economic picture is a tough one and will remain a tough one for some time, the Chancellor says said he’s hitting his targets. What worries me there is the relatively high levels of unemployment that are going to last for some time to come.
“The enterprise zone for Deeside is a positive initiative, as are the various investments in technology, such as the ultra-fast broadband for Cardiff. We need to see the detail on some of the others though; the right sentiment is obviously there but we need to meaningful investment too if we’re to really help our entrepreneurs.
“Another other key point, from a South Wales perspective, is the electrification of the Valleys Line. We’re short on detail at the moment on that point but at least the chancellor hasn’t forgotten about it. It could make a huge difference to the Valleys which have never fully recovered from the decimation of heavy industry. This is a chance for investment there that will do real long-term good.”
However, Islwyn’s Labour MP Chris Evans has warned that the failure to cut fuel duty could hit jobs.
Mr Evans said: ‘Instead of offering hard pressed motorists some relief from record fuel prices, the Chancellor chose to offer millionaires a tax cut.
“The failure of the government to protect motorists from rocketing petrol prices could have a serious impact on jobs as more and more people decide they simply cannot afford to get to work.
“Small businesses will also be hit hard by the Chancellor’s decision as will household budgets as the he increased cost of transporting goods contributes to rising prices in the shops.
“Quite simply, the Chancellor should have offered some hope to struggling motorists, rather than a tax cut to millionaires; it is quite clear where this government’s priorities lie.”
ny benefits these local business people feel they are going to derive from the budget are abstract, unless of course one considers how those benefits to business are to be funded, and, by all measures it appears they will be funded from the pockets of pensioners, from single parent families, from motorist who already pay an average of 62% tax on every litre of fuel, from pensioner who will lose age tax concessions,and from the increases in road fund taxes.
Many of the austerity measures the government had announced over the last year or so have yet to kick in, it is clear this Tory Lib/Dem government are intent of squeezing the politically venerable until the pips squeak, whilst local business leaders laud the budget as `welcome` a real opportunity for long term good`, `encouraged` `with positive initiatives`.
Andrew Diplock also says “He’s also talked about Michael Heseltine reviewing how the Government can work better with private sector to grow economy. There are many opportunities for the private sector to pick up roles from the public sector following the cut backs. This would not only improve efficiency but also boost local business.he goes on to say,“In Caerphilly we’re already working very closely with the local authority. Of course, we’ll welcome any further ideas the government has to offer, but perhaps, locally, we can be a good model for the review.”, well, if this means Micheal Hesiltine visiting Wales, I suggest he remains as as far the other side of Caerphilly Mountain as possible, there are still those thousands of Valley people who remember what he did to these communities in Thatchers Government, if what he did then is taken as this mans ability to revive business then god help business.