George Osbourne, Chancellor of the Exchequer, told Britain that it should expect more pain and job losses in Tuesday’s Autumn Statement. But he announced that Wales is to get an extra £216m for building work.
Autumn Statement: At-a-glance summary of key points(BBC News).
Reacting to the statement, Andrew Diplock, chairman of Caerphilly Business Forum, said: “There are initiatives in the Chancellor’s statement that could help to some degree, such as the loan scheme for small businesses and the investment scheme for medium-sized businesses, but as always, it will take time to see how much of a difference such schemes make.
“On the other hand, announcements such as the cancellation of the 3p rise in fuel duty will certainly be welcomed by everyone though it must still be said that this isn’t a cut – fuel duty remains the same and the cost of fuel remains a ball and chain to many businesses in Wales.
“Then there are other promises which haven’t been quantified or qualified by the Chancellor in his speech. The investment in infrastructure could be good for business, generate jobs and boost the local economies – but we need to know where, when and by how much before we celebrate.
“And on the back of these investments, a point raised many times by members of Caerphilly Business Forum is the difficulty local businesses have in competing for government procurement contracts. The Chancellor says he will make this easier – a lot of businesses in Wales will be watching and waiting with interest.”
First Minister of Wales Carwyn Jones has said that UK Government plans for the economy are simply not enough.
He highlighted the Welsh Government’s concerns about predictions for growth, the impact on the most vulnerable in our society the welfare reform changes will have and proposals for public sector pay. He called on Ministers in London to again re-think their approach.
The First Minister said: “The Chancellor’s statement confirms once again that the UK Government’s policies are just not working and they are very worrying for everyone in Wales. The independent Office of Budget Responsibility has forecast that growth will be less than 1% this year and next. The Chancellor has also ignored the OBR’s forecasts of continuing increases in unemployment and the impact this will have on families and communities across Wales and the UK.
“There is no escaping that the economy is close to returning to recession. The Chancellor says his plan aims to bring down public debt, but his own figures show that borrowing and debt will be higher than previously forecast and will take longer to repay. The books won’t be balanced before the next general election and austerity in public spending will continue until at least 2016 or 17 This paints a worrying picture of the outlook for Wales and the challenge we continue to face in delivering public services and protecting the economy.
“We have been pressing the UK Government for more action to boost the economy and increase investment for the last 18 months but this response falls short of what is needed. It is good that the Chancellor has recognised the importance of infrastructure, an argument we have repeatedly made and on which we have made marked progress. We welcome the £216 million capital consequential we will see for our budget as this will be important as we develop our own Wales Infrastructure Investment Plan. We look forward to receiving further details on the revenue consequential in due course.
“Some welcome steps have been announced, quite a lot of which we are already doing in Wales, from more support for early years, boosting employment support for young people and increased education funding targeted at those children who could benefit most from our help.
“I am pleased the Chancellor has committed to working with us to improve the M4, bring about extra capital investment, credit easing to help small businesses and the extension of the business rates relief. But I am afraid it is not enough and it should have been done earlier.”
“The proposals outlined are simply not the right combination we need to create the growth we desperately need. The clock is ticking and the Chancellor does not have the luxury of sticking to his plan as people lose their jobs and incomes are squeezed.”
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