THE emergency Budget brought a sigh of relief from the Merseyside business community.
Generally, it was felt Chancellor George Osborne had done a good, if unsurprising, job in almost impossible circumstances.
Jack Stopforth, Liverpool Chamber of Commerce chief executive, and Carl Cross, investment director at stockbroker Rensburg Sheppards, saw the Budget speech at Cinnamon cafe, in Old Hall Street – and gave their reaction to the Budget speech live on the LDP Business website.
Mr Stopforth welcomed the Chancellor’s scheme to help new businesses in countries and regions outside the South East.
He said the Government must give strong support to regions like Merseyside where the public sector employed a large part of the workforce.
“It’s been a long time since any Government has had a regional policy worth a carrot,” he said.
“It has finally been recognised there is disparity across the country.
“You can’t just let London and the South East overheat while the rest of the country withers on the vine.”
“In the early 90s, capital programmes were cut, and left us with a disintegrating and dilapidated public infrastructure,” said Mr Stopforth.
“I feel that we need to go ahead with capital expenditure projects. I hope it doesn’t just mean favoured capital programmes in London, but actually relates to genuine capital projects, not least in Merseyside. Of course I’m thinking of the hospitals and the river crossing.
“I’m delighted he’s recognised it’s important to control and reduce the corporation tax on smaller businesses, as well as on the bigger guys.”
The move to cancel backdated business rates bills for port-related businesses was also welcome news.
“We joined forces with the Port of Liverpool and chambers representing ports around the country to lobby hard that that should be rethought,” he said.
Port businesses, he added, were deeply concerned that the charges could force them to close.
But Mr Stopforth sounded a note of caution about the VAT rise, noting a similar measure failed in Japan.
Mr Cross said: “George Osborne has always been very political and this was a very political Budget.
“It was a bit of a surprise capital gains tax (CGT) was increased to 28p rather than 40p, but that’s welcome as a reasonable compromise, eliminating the complications of tapers and allowances.
“The cuts in corporation tax were again welcome, and again those reductions in potential tax burdens for smaller companies are going to be welcome to boost private enterprise.
“A lot of the cuts in welfare were more or less expected, but they have the huge advantage of being able to blame pretty much everything on the previous government.”
