Cumbrian businesses facing challenging times will be eagerly awaiting growth mentioned in the Chancellor’s Spring Statement, according to the county’s chamber of commerce.
Commenting on the statement, Cumbria Chamber of Commerce managing director, Suzanne Caldwell expressed disappointment at the lack of new ideas set out by the Chancellor.
“The changes to benefits have been significantly shared prior to the Statement. It’s to be hoped that these, along with the support promised for employment support and Jobcentres, have a significant positive impact in practice in getting more people with disabilities and long-term health conditions into work and into better work,” Suzanne Caldwell said.
Increases in employers’ National Insurance contributions and the minimum wage, as well as forthcoming changes to employment rights, are being scrutinised closely by employers in all sectors. More part time and fewer full time jobs could result.
Cumbria Chamber of Commerce carried out a survey of members after the Budget which revealed with 60% were expecting to limit recruitment while 61% were expecting to have to increase prices to offset increased labour costs.
50% of businesses anticipated passing on higher costs to customers through price increases. 12% of respondents were expecting to have to make redundancies.
Increased investment in defence may well benefit the wider supply chain and with several firms based in Cumbria catering for this part of the economy, the Government’s confirmation of investment in the sector could be good news.
Windermere-based HR consultant Hattie Jones has advice for businesses in Cumbria who are looking to recruit.
“The £2 billion capital spending increase funding infrastructure projects and defence as well as the announcement of a £600 million investment to address skills shortages and to develop technical and vocational training is a great opportunity for businesses in Cumbria looking to grow and recruit more skilled workers,” Hattie said. ”This does highlight the need for these businesses to revisit and reinvigorate their employee value proposition to set themselves apart when it comes to their culture, compensation and benefits.”
She added: “With the announcement of more welfare cuts and in particular the freezing of the health element of universal credit, it is more important than ever for businesses to ensure they are considering and acting accordingly when it comes to the accessibility of roles and workplace set up in order to enable those who have a limited capability for work or restrictions to continue being able to show up to work and contribute.”
“The Chancellor used her Spring Statement to double down on the Government’s intention to cut spending on welfare and support more people into work by announcing further cuts,” Ben Harrison Director, Work Foundation at Lancaster University, said.
“Despite repeatedly stating that the Government is on the side of ‘working people’, making cuts of this nature risks making it significantly harder for many people to access employment.
“The OBR has been unable to fully certify the impact the proposed welfare cuts will have on reducing spending and getting people back to work, but the verdicts of those groups representing disabled people are clear about the substantial impact on living standards they are likely to have on some of the most vulnerable people in society.”
Joanna Young, the chief executive officer of Barrow Citizens Advice, commented:
“At Citizens Advice we are concerned that the recent measures announced by the Chancellor concerning disability benefits may well impact negatively on some of the most vulnerable residents in our community. We are particularly worried about the proposed changes to the PIP Assessments and the halving of the disability rate within Universal Credit, and will be responding to the Government’s Green Paper accordingly.”
Meanwhile Westmorland and Lonsdale MP Tim Farron said he felt short-changed by the plans set out by Rachel Reeves.
“The Chancellor was right to talk about international turmoil harming our economy, but if this was a statement about our country making its own luck then there must have been some pages missing,” Mr Farron said. “If this Government were actually serious about boosting growth then the Chancellor would have today approved the A66 upgrade, announced funding for our farmers, and scrapped her tax hike on small businesses.”
