Business leaders from across the West Midlands have been reacting to Chancellor Jeremy Hunt's Budget. Some have welcomed the planned new investment zone in the West Midlands and an increased commitment to devolution while others have said it was a Budget with one eye on the next General Election.
Here, we round up some of the reaction from the region's business community.
Referring to the planned new West Midlands investment zone, David Parsons, Midlands managing director at Secure Trust Bank Commercial Finance, said: "Greater financial support for the West Midlands business community will always be welcome but it's important these investment zones are not a one-size-fits-all approach. Our strengths are different to those of other regions and this also applies on a business-by-business level.
"The challenges and opportunities facing each management team are completely different and investment should always go beyond just the cash - the support, guidance and close contact between management teams, investors and their funders can be decisive in whether that business fulfils its potential or not."
Also reflecting on the investment zones is Matt Hammond, PwC's Midlands market leader and Birmingham senior partner.
He said: "Having first announced the regional investment zones in the September fiscal statement, it's pleasing to see a commitment from the Government and practical details about the delivery of the zones.
"While the proposals have been scaled back, both the West Midlands and East Midlands are set to still benefit from the proposed scheme that will be linked to a local research institution such as a university. The investment zones will support the regional levelling up agenda by driving economic growth in the Midlands.
"Our economic outlook analysis showed the region's output remained around 3.3 per cent smaller than pre-pandemic levels and identified the Midlands as one of the regions with most potential for growth."
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He added: "Employers in the West Midlands have an opportunity to innovate and consider how their operations can become greener, particularly in the manufacturing sector that represents a high proportion of the Midlands' economy.
"Embracing new, greener technologies and investing in skills will provide benefits for business operations and more employment opportunities in the region, as well as making a difference to the environment."
Stuart Smith, head of the Midlands region with property agency JLL, reflects on the increased commitment to devolution.
"The Chancellor was always unlikely to pull any rabbits out of the hat with this statement given the need for economic stability and to reassure financial markets," he said.
"Still, an additional pot of funding for the West Midlands, as part of an increased commitment to devolution, will be welcomed by businesses across the region. Some may still feel disappointed though and reports that around £2.5 billion remains unspent from the Levelling Up fund will prove frustrating to those hoping for support for underserved communities.
"As inflation looks likely to subside later in the year and the economy moves to a surer footing, the property sector will be hoping this statement is the Chancellor laying the groundwork for more extensive support in the future."
Andy Morris, managing director of Solihull-based housebuilder Hayfield, welcomed the Government's promise to reset and clean up domestic energy supply.
"The £20 billion carbon-cutting investment project is a commendable statement of intent," he said.
"However, we also need greener homes to be fast tracked if this government is truly committed to a greener future. In the absence of incentives to support those investing in cleaner technologies, addressing our barrier-laden planning system is imperative.
"Local planning policies too often result in an uphill battle when it comes to the inclusion of sustainable specifications. The Government has shown a will to invest in clean energy and delivered a welcome package of support to help the country through this energy crisis.
"But this will only ever be a sticking plaster unless we are far more ambitious in overhauling the way we power our homes."
Raj Kandola, head of policy and strategic relationships at Greater Birmingham Chambers of Commerce, said there was much to admire in the Chancellor's statement.
"He put forward sensible options to tackle our inherent labour market shortages and turbo charge business investment in a bid to raise stagnant productivity levels," Mr Kandola said.
"Support for working parents around childcare costs and pension reform will hopefully bring more people back to the labour market and ensure we retain experienced staff. A move towards full expensing around capex investment was also very welcome. However, for the measure to be truly effective, it's a policy that needs to be implemented permanently in order to enable long term investment.
"The introduction of a new investment zone in the West Midlands also feels much more strategic and aligned to our regional strengths in education as opposed to the previous iteration - the challenge remains to ensure that jobs and investment aren't simply being diverted from other parts of the region.
"Although heavily trailed, greater devolution of powers to the combined authority is also a step in the right direction. For levelling up to truly succeed, decision-making powers need to rest with those who truly understand the economic contours of the region."
Chris Romans, EY's head of tax in the Midlands, said the planned new investment zones was positive news and would hopefully drive private sector investment.
"The freeze on rates for businesses moving into the zone could create opportunities for growth and job creation," he said.
"As a region, the West Midlands is expected to see jobs grow slightly slower than the UK average between 2024 and 2026, at an average rate of 1.1 per cent each year. The new investment zone could help the region outperform this forecast.
"Sectors such as information and communication, which are forecast to be the fastest-growing sectors in the Midlands, will continue to play a key role in economic performance.
"This high-value sector has the potential to boost growth across the region while adding resilience to the economy."
Russell Luckock is the former chairman of Birmingham pressings firm AE Harris and a regular columnist with our sister newspaper, Birmingham Post.
He said: "I welcome the childcare proposals laid on the table as I also welcome the scrapping of the limit on tax-free pension savings - both measures will benefit companies of any size.
"It will also benefit children in childcare as they get, at an earlier age, the ability to learn to live with others from a range of family backgrounds. The scrapping of pension limits will also almost certainly encourage the postponement of early retirement, especially those in the medical profession.
"There should never have been such legislation in the first place. I also welcome further development zone measures as this will lead to more jobs being created, in turn supporting Government's levelling up policies.
"The help to pubs is very welcome which I hope will stem the growing number having to close their doors due to both costs rising and patronage falling. A broadly welcome Budget which certainly had one eye on the coming General Election."
Coventry and Warwickshire Chamber of Commerce's chief executive Corin Crane said: "The Chancellor made all of the right noises at the beginning of the Budget as he talked about providing stability and growth.
“The chamber has been calling for support to help businesses recruit and there were plenty of announcements around that. In terms of enticing over-50s back into the workplace, it was high on the agenda, but whether there was actually enough in reality to get people to get back into work remains to be seen.
"The childcare support is genuinely exciting and that could be a really big deal - it's just a real shame that it is going to be staged until 2025 because as we know from speaking to so many firms, there is a real need now.
“There was something really important about the sentiment at the top of the budget in terms of avoiding recession and getting inflation down."
James Dickens, managing director of Birmingham-based housebuilder Wavensmere Homes, said: "We were bracing ourselves for a lacklustre Budget and this did not feel like a Budget for growth.
"Increased revenue could be created for the Treasury if more initiatives had been announced today. We welcome the energy price guarantee remaining at the £2,500 level until June, as the proposed change kicking in next month would have disproportionately affected the lowest income households - many of which are already reliant on food banks.
"Fuel duty remaining frozen, and the continuation of the 5p reduction for another 12 months is also a relief.
"With the weakness of Sterling against the Euro, a cut - rather than the significant rise to 25 per cent - to corporation tax would have been more appropriate, given the UK is a net importer."
Matt McDonald, employment partner at law firm Shakespeare Martineau, said: "The promise of more free childcare for parents with children under two is a step in the right direction. With the cost-of-living crisis putting many families under pressure, it is vital that they receive proper support that removes barriers that may have otherwise stopped them from getting back to work.
"Unfortunately, the cost of childcare in the UK is such that for many lower paid workers there has been no financial benefit in going back to work before their children turned three.
"This announcement is set to bridge that gap between the end of parental leave and the start of funded nursery care for three and four-year-olds, helping parents to get their careers back on track at a faster pace than they may have been able to before.
"With the world of work crying out for skilled employees, this is a first step to ensuring that workers aren't unnecessarily forced from their chosen careers before time."
