Following this morning’s speech made in Oxfordshire by Chancellor of the Exchequer, The Rt Hon Rachel Reeves MP, Chief Executive of the ACT, Annette Spencer said:
"From a corporate treasury perspective, for companies looking to plan, invest and operate it is vital that the Government and regulators aim to deliver clarity, predictability and confidence for corporates so that they can be better positioned to contribute towards UK growth. Therefore, we welcome the Chancellor’s commitment to “remove constraints on the supply side of our economy, making it easier for businesses to trade, refinance and to build”.
"The ACT’s members will support many of the measures announced by the Chancellor today alongside investment opportunities for the private sector, including proposed transport expansions and initiatives, growth projects for and between Oxford and Cambridge, and development opportunities across the country more widely. Investing and improving connectivity and digital infrastructure helps businesses large and small and should be welcomed. However, much of the detail of most relevance to corporate treasurers is pending publication of a series of reports over the coming months on Regulatory framework, Pensions and Industrial Strategy.
"Notwithstanding today’s announcements, for many businesses there are contradictory signals. The Government's expressed commitment to prioritise growth runs counter to many of its earlier decisions, notably the increase in Employer NICs (and changes to NIC thresholds) which will likely hinder – or at least slow down – investment and growth in all sectors. Meeting the cost of the NICs changes is likely to create a pause in investment, both for larger corporates and for the small and medium sized businesses who play an important role in supply chains. Private businesses large and small are an integral part of creating the growth that the Government aspires towards. The messaging and the actions need to work in tandem and consistently if investor confidence is not to be further eroded. We remain willing to engage constructively with Government to address factors that act as a drag on investment and growth."
