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Sept 2022

Business

Harrogate district business groups cautiously welcome mini-budget

Published: 23 Sep 2022, 16:11 BST

by Calvin Robinson

Business groups in Harrogate, Ripon, Knaresborough and Pateley Bridge give their views on today's mini-budget.

Kwasi Kwarteng, Chancellor of the Exchequer, who announced a "mini-budget" today.

Business groups in the Harroagate district have broadly welcomed today's financial measures introduced by Chancellor Kwasi Kwarteng.

Mr Kwarteng announced a mini-budget in the House of Commons this morning.

It included cutting income tax, stamp duty and reversing the rise in National Insurance contributions and corporation tax.

Mr Kwarteng also lifted the cap on bankers’ bonuses and heralded the measures as a “new era” for the UK economy.

David Simister, chief executive of Harrogate District Chamber of Commerce, said he welcomed some of the measures.

He said:

“The UK’s economic situation is very fragile, we are technically in recession, inflation is putting pressure on household budgets and an increase in interest rates will put a strain on many homeowners’ budgets.

“The aim of this emergency budget is to stimulate the economy by cutting taxes and giving people more money in their pockets.

“The scrapping of the national insurance rise and reversing the increase in corporation tax is certainly good news for businesses large and small.

“Employees across the board will benefit from the NI reduction, as well as the cut in the basic rate of income tax, but the latter won’t be felt until after next April. Cutting the cap on bankers’ bonuses is a contentious issue for some, but it is designed to attract the brightest and the best in the industry to the UK.”

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Ripon BID welcomes corporation tax move

Lilla Bathurst, manager at Ripon Business Improvement District, said it remained to be seen if the planned tax cuts will work.

She said:

“Ripon BID welcomes the scrapping of the planned increase in corporation tax and the reduction of national insurance contributions and the relief this will bring to businesses and employees. It remains to be seen if these tax cuts will generate sufficient growth to off-set the tax the Chancellor has given up.

“Ripon BID is disappointed that the government did not follow the recommendations set out in the BusinessSOS campaign, supported by over 150 Business Improvement Districts including Ripon BID. We asked for a package of measures including business rates relief and a reduction in headline VAT rates for retail, leisure and hospitality.

“The previous announcement of support for businesses energy bills was welcomed but as stated previously we feel did not go far enough and uncertainty remains.”

Knaresborough chamber warms of business failures

Knaresborough Chamber of Trade and Commerce said it welcomed the cut in corporation tax, but added that this winter will still be difficult for many businesses.

Chamber executive member Peter Lacey said:

“I like to be positive, but can’t say I’m confident that we’ll not see business failures in the coming months.

“We’re committed to supporting the businesses of the town and its surrounding area but recognise that we’ll need to redouble our efforts in the current economic climate.”

Nidderdale chamber: measures 'give confidence'

Meanwhile, Tim Ledbetter, chair of Nidderdale Chamber of Trade, said:

"We welcome measures announced by the government today, whilst reserving judgement on many of them until the finer detail has been analysed.

"The measures will hopefully give confidence to the public and businesses who understandably have had their confidence rocked by events, not just in this country but from around the world.

"I suppose with the cancellation of the planned rise in duty on beer, wine and spirits people can at least either celebrate or if disappointed with the measures drown their sorrow."

Thank you for your interest in this story

Harrogate district business groups cautiously welcome mini-budget

Read more:

Ripon BID welcomes corporation tax move

Knaresborough chamber warms of business failures

Nidderdale chamber: measures 'give confidence'