East Midlands Chamber has given its reaction to the Chancellor’s Spring Statement, delivered as the Office for Budget Responsibility (OBR) halved its growth forecast for the UK to 1% and latest data showed inflation for February had eased to 2.8%.
East Midlands Chamber Director of Policy and Insight Richard Blackmore said: “The projections the Chancellor outlined for how GDP is expected to shape up are a little underwhelming, and with the country’s growth forecast having been halved, the numbers aren’t that inspiring.
“Significant defence investment will add to the overall economy, and for areas like Derby to receive spending in defence technology and engineering will benefit the city, surrounding areas and supply chains so that’s welcome, but the industrial strategy must be all-encompassing and prioritise all sectors.
“While there was talk of spending on new technical colleges across the country, the current provision from FE colleges in the East Midlands should be bolstered by investment first.
“Our recently published Quarterly Economic Survey revealed corporate taxation to be the number one concern of East Midlands businesses but from next month we’ll be in a position to assess any change to the impact on firms from things like higher National Insurance contributions. As for investment, all eyes will now be on the government’s comprehensive spending review, where measures supportive of business are essential in order to enable growth.”
To view East Midlands Chamber’s Quarterly Economic Survey for Q1, 2025 click here.
