"Box-office" - Yorkshire business responds to Rishi Sunak's Budget

In his first Budget since taking the keys to Number 11 just a few weeks ago, Mr Sunak unveiled billions of pounds worth of support for firms large and small.

In response to the Covid-19 outbreak, Mr Sunak acknowledged the "challenging times" faced by the economy saying there was "likely to be a temporary disruption" to the economy but insisted his plans would bring "stability and security".

The scale of the challenge facing the economy was underlined by the Office for Budget Responsibility (OBR) in forecasts prepared before the full impact of the virus could be known.

Growth is expected to fall to 1.1% in 2020, down from 1.2% last year.

Measures announced included:

- A devolution deal for West Yorkshire worth nearly £2bn

- A £1 billion business rates holiday in the coming year for retail, leisure and hospitality firms with a rateable value of under £51,000

- The Government will fully meet the cost of providing statutory sick pay for up to 14 days for workers in firms with up to 250 employees, providing over £2 billion for up to two million businesses.

- Reforms to the benefits system to make it easier to access funds will provide a £500 million boost to the welfare system, along with a £500 million hardship fund

- A new coronavirus business interruption loan scheme offering government guarantees to support banks lending £1 billion to small businesses

- A £3,000 cash grant to businesses eligible for small business rates relief

- A freeze on alcohol duty and a £5,000 business rates discount for pubs

- £1.4 billion in investment for the science institute at Weybridge where samples of coronavirus are being analysed

Hours before the Budget, the Bank of England set the scene with an emergency interest rate cut from 0.75% to 0.25% and a series of other measures designed to help businesses and households through a coronavirus economic shock "that could prove sharp and large, but should be temporary".

Mr Sunak said: "I know how worried people are. Worried about their health, the health of their loved ones, their jobs, their income, their businesses, their financial security.

"And I know they get even more worried when they turn on their TVs and hear talk of markets collapsing and recessions coming. People want to know what's happening, and what can be done to fix it.

"What everyone needs to know is that we are doing everything we can to keep this country, and our people, healthy and financially secure."

Mr Sunak's pledges were generally received well from the region's business community, with devolution in particular a source of comfort from leaders.

Jonathan Geldart, Director General of the Institute of Directors, called the speech a " box-office Budget", saying: "Given the circumstances, the Chancellor had to be bold, and he came through for business today.

“With the coronavirus outbreak threatening a cashflow crunch, measures to cut costs and support loans to businesses are on the money. Wider reliefs around business rates and job taxes will also buoy firms as they look to weather Covid-19’s implications.

“The Chancellor is going ‘all-in’ on infrastructure. Directors have long been crying out for transport and digital upgrades, but this doesn’t mean there can be a blank cheque. The question now is how we translate that money into real improvements for local economies."

Andy Wood head of Grant Thornton’s Yorkshire office was also supportive, saying: “The emergency cut in interest rates this morning illustrates that the Budget was delivered against a context of global concern and uncertainty over the impact of coronavirus on the UK and global economy.

"We welcome this intervention and the increased support announced by the Chancellor today for business and individuals likely to be impacted.

“From a Yorkshire perspective I am very pleased that the new £1.8bn West Yorkshire devolution deal has finally been agreed, delivering more than £300m of investment into public transport and £25m towards the establishment of the British Library North in Leeds.

“We look forward to hearing further details about the Government’s proposed new economic campus in the North, which will unquestionably help with the agenda to level-up the economy, and we will do all we can to lobby for it to be located here in Leeds.”

Euan West, office senior partner at KPMG in Leeds, welcomes the announcement of a devolution deal for West Yorkshire in the Budget:

“Confirmation of the Leeds City Region devolution deal is the Budget’s main event for businesses in this part of the world.

“The regional empowerment this represents is to be welcomed with open arms after much flag waving. It is a step-change in the way West Yorkshire will organise itself as a place where businesses and people can fulfil their ambitions.

“It has been easy to lose sight of what devolution will bring to us as businesses and citizens in the region, but if we think about transport; skills; clean growth and investment, then devolution offers the opportunity of a strategy for West Yorkshire that business leaders can buy into and from which communities can benefit.

“The leadership and visibility offered by a mayor for this City Region, who can act as an ambassador and advocate on a national and global stage, doesn’t come a moment too soon and we look forward to working with them, as well as the Combined Authority, as they establish and realise an ambitious agenda for the region, which is home to many of our colleagues and clients.”

The Federation of Small Business called the speech a "pro-small business Budget".

Its National Chairman Mike Cherry said: “This is a pro-small business Budget, which has delivered a high streets bonus, a series of Conservative manifesto promises to small businesses, and emergency steps to support small firms through the coronavirus outbreak.

“Covering the cost of Statutory Sick Pay and emergency measures for the self-employed are particularly welcome. Removing the minimum income floor for those on Universal Credit will bring help to those working hard to keep their businesses going. These are vital contingencies for the UK’s 5.8 million-strong small business and self-employed community. There may need to be further steps in the weeks and months ahead. The Bank of England funding package means that there are no excuses for banks not to help, when a small business customer is in distress.

“Suspending business rates for small high street firms is a huge bonus for our town centres and high streets. Together with extra cash for those that already qualify for small business relief, this shows a real commitment to supporting small businesses at the heart of communities. The case for fundamental reform to bring down the burden of such a regressive tax on bricks-and-mortar businesses is now stronger than it has ever been, and FSB is ready to help the Government deliver this.

“This has been a deliberately pro small business first budget for the Chancellor. We hope it is the start of things to come.”