LIZ CAMERON
Tomorrow, we may well begin to see the first real evidence of whether the UK Government has adopted a new economic strategy in the wake of the EU Referendum.
Autumn Statements always matter to business but tomorrow’s Autumn Statement matters more than most. Will we see an end to the austerity policies pursued by the Chancellor’s predecessor? How will the Treasury respond to the downward revisions in economic growth projections over the next two years? Is the Autumn Statement (and next Spring’s Budget) still relevant to Scotland now that the Scottish Parliament has its own tax raising powers?
Most suspect that Philip Hammond, in his first major economic statement as Chancellor, will take the opportunity provided by the Brexit vote to identify eliminating the budget deficit as a longer term objective of the UK Government, opening up the possibility of increasing planned spending on infrastructure.
This would be a sensible move from a Government that has at last made some positive recent decisions on large scale building projects such as giving the green light to a third runway at Heathrow and announcing the route for the second phase of HS2. A scaling back of austerity may also create some room for reductions in business taxes – particularly important at a time when firms are reporting rising costs and tightening margins.
The fact that the economy has continued to grow this year, albeit more slowly in Scotland than in the rest of the UK, has enabled our Governments north and south of the border time to prepare and support businesses to be in the best possible position to compete and grow through the challenges and opportunities that lie ahead.
In order to succeed, we will need support from Government across a range of areas, from developing our transport and digital connectivity, to ensuring a competitive tax environment, to supplying business with access to the talent it needs, and to providing a planning system that enables, rather than slows, development.
We will be looking for a clear statement from the Chancellor that the UK is open for business and that the Government sees our private sector as the driver of growth and the creator of jobs.
He needs to send a clear message to boost business confidence and promise no new input taxes on business for the lifetime of this Parliament.
Targeted measures to support business at a UK level are vital and must be complemented by similarly intentioned action from the Scottish Finance Secretary in his Budget in December.
With the right support behind us, businesses are determined to deliver success in the months and years ahead.
Liz Cameron is chief executive of Scottish Chambers of Commerce
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