Karl Tucker, chair, Heart of the SW LEP:
“The headline news for us in today’s Budget was the announcement of the successful Plymouth and South Devon Freeport bid. As one of just eight new freeports announced today, it is fantastic to see that the Government has recognised the opportunities the South West presents and the unique offer in this bid.
The Plymouth bid provides a real growth opportunity for the UK internationally, particularly looking at industries such as autonomous marine, and also potentially for short sea shipping to tackle some of the challenges of getting goods in and out of Ireland. It offers genuine innovation too, presenting the freeport as a testbed for marine engineering that isn’t currently being done anywhere else in the country.
Businesses in the South West have been disproportionately affected by the pandemic, with many operating in the tourism and hospitality sectors or dependent on them, as well as a high number of SMEs, so it is good to see our area recognised by the Government.
The recognition by the Government of the necessity of improving digital and management skills is also welcome, and particularly supporting SMEs to upskill in this area.
The continuation of business support measures announced, including the extension of the Coronavirus Job Support scheme and help for the self-employed until September is good news, as well as the continued investment in the Kickstart Scheme and commitment to doubling the current cash incentive for apprenticeships.
The money for investment such as the Levelling Up Fund and the Community Renewal Fund provide real opportunities for our places to address some of the key challenges they face and the funding for Yeovil’s Octagon centre is a boost for the town.
However, the tax rise for businesses from 19% up to 25% by 2023 will disproportionately disadvantage smaller businesses with a profit of between £50,000 and £250,000 with the transition rate of tax that will apply through that profit band.
We welcome the announcement of a new National Infrastructure Bank as a positive step to unlocking infrastructure projects, but we call on it to look first at some of the longer-standing projects that really need to be delivered, such as the Dawlish rail line, as well as digital upgrades. It will be important too that it doesn’t just focus on the projects in cities and major urban areas but seeks to address rural infrastructure barriers, which often are harder cases to make when looking at the numbers.
Overall, it was a business-friendly budget and presented a more positive economic forecast than previously expected, so there are many reasons for optimism.
We look forward to more details on the Shared Prosperity Fund and will be continuing to make the case to Government to ensure our area is sufficiently recognised for the challenges we are still facing and the opportunities we can offer UK plc.
