Why business leaders were encouraged by Jeremy Hunt's Spring Budget: Beckie Hart

Back in February, we published the CBI’s Spring Budget Submission, calling for measures to drive economic momentum, strengthen confidence, and encourage investment. On Wednesday, we saw the Government follow through on CBI flagship asks on childcare, business investment and occupational health. A win for firms and people – including in Yorkshire and the Humber – and a positive sign for the UK’s future prosperity.

Let’s start with childcare. The Chancellor announced more support for parents – including those looking to get back to work. Spiralling costs have meant that many have been held back from accessing employment or increasing their work hours. At the CBI, we’ve been calling on the Government to boost childcare funding and extend free hours for one and two-year-olds. Expanding free childcare will make it possible for thousands of parents to return to the workforce.

This has the potential to make a meaningful difference to labour market availability – alleviating the pressure on those firms struggling to recruit and retain staff. It will also allow parents to balance care and career needs.

Firms in our region also welcomed steps to encourage business investment. Ahead of April, businesses across the UK were anticipating a one-two punch of rising corporation tax and the end of the super-deduction. The Chancellor has taken steps to mitigate the impact on business investment at this juncture, replacing the super- deduction with our proposals for “full capital expensing.”

This frees up cash for firms, making it easier – and quicker – to turn investment plans into action, making firms more effective, efficient and ultimately, successful.

Bolstering support for businesses choosing to invest in the UK is crucial. It means the UK will get to keep its place at the top table when it comes to attracting investment.

And on occupational health, the Government acknowledged our calls to help firms provide better workplace assistance and policies – particularly for employees with musculoskeletal and mental health conditions; two of the biggest reasons why people have to take time out of work.

Adopting our asks on childcare reform and full expensing will – alongside other key measures – accelerate our growth ambitions and help improve living standards. But our work doesn’t stop here. There are plenty of prizes still up for grabs – like on skills, green markets and energy efficiency.

For example – we have the chance to upskill our existing workforce, further easing pressures on the labour market. Like by turning the Apprenticeship Levy into a “Skills Challenge Fund” – where firms can spend funds on skills they know their employees need.

One week on from the budget, firms feel positive about the Chancellor’s approach to economic growth and look forward to seeing the Government’s next steps to embrace our chances for sustainable prosperity.

Beckie Hart is CBI regional director for Yorkshire and Humber