We have applauded the first two ‘Osborne’ Budgets but on this occasion our verdict is ‘must do better’

As yet another Budget comes and goes I am keenly aware that the rhetoric surrounding it has changed little over the years. Those on the same political side as the Chancellor pick out the bits they like and herald the whole thing as though he had produced the elixir of life, those from the opposition pick out the bits they don’t like and accuse him of being something akin to the devil incarnate. Neither approach does them any credit nor does it do us mere mortals any particular service.


In my view this year’s budget was not too different from the majority I have listened to over the last twenty or thirty years, good in parts not so good in others, from my perspective it neither got the blood racing nor did it make it boil. Of course the reduction in Corporation tax is welcome as is the support for companies engaging in research and development but the failure to retract plans to increase fuel duty and business rates was disappointing. Despite claims to the contrary this was not a budget to inspire growth, it was neutral at best.

Whilst some Hertfordshire businesses are starting to see ‘light at the end of the tunnel’ times remain tough. These, previously announced increases will only hinder hard pressed business people in their efforts to grow profits and in so doing to provide the platform that will create much needed jobs. Arguably this government has done much to stabilise the economy following years of profligacy by its predecessor but much more needs to be done.

Whilst applauding the Chancellor for ‘steadying the ship’ one is, nonetheless, entitled to ask “what next”. Once stability has been achieved we have to plan for growth. As any experienced business person will tell you standing still is rarely an option. There is much to be done and I certainly recognise that the challenges are complex but, loading additional cost burden on thousands of small businesses is not the answer. Certainly the reduction in Corporation Tax will help some but it won’t make up for the additional property costs (including rent) or the burgeoning increases in fuel costs. Added to the additional National Insurance costs landed on business during the last throes of the previous government it requires, if anything, genuine reductions in the cost of doing business.

The British Chambers of Commerce recently launched its ‘Business is good for Britain’ campaign it might have used the word ‘essential’. Whichever way one cuts it when it comes to wealth and job creation business is ‘the only game in town’. Hertfordshire businesses in particular have demonstrated extremely high levels of resilience in the face of rising costs and increased global competition. Given a supportive environment Hertfordshire businesses will begin to take up the slack in the jobs market but they cannot do so if they are continually put under pressure by the effects of indirect taxation. We have applauded the first two ‘Osborne’ Budgets but on this occasion our verdict is ‘must do better’.

Confidence is the key!

When preparing a briefing for a visiting dignitary recently I was reminded that, despite the seemingly continuous onslaught of bad news, we lived and worked in an area which had a great deal going for it. Certainly times are tough and I acknowledge that some people will be feeling the effects more than others. Nonetheless, there are a great many things to be grateful for which, among other reasons, is presumably why so many companies have decided to invest here. Certainly it can be argued that a number of our large companies have traditional ties to the area and are therefore more likely to remain, but that ignores the fact that their principle decision makers are no longer UK based and in an age of greater mobility they have other options. That they choose to stay here must be due to factors beyond geographical longevity. Location and local amenities are obviously key factors and surely on that count there can be few places that are better situated. Close to three international airports. Convenient for the UKs road network. Access to quality education. Adjacent to some wonderful countryside and on London’s doorstep with access to national and European rail networks. The ability to recruit a skilled workforce with its roots in a number of the key sectors is clearly a condition that is non-negotiable. When one aggregates these features and combines them with the existence of a reliable, broadly based supply chain I can see no reason why the area would not be the ‘location of choice’ for any business wishing to invest in the UK. True I am somewhat biased but I truly believe that the facts speak for themselves. My point? It’s simple we continue to be bombarded with bad news by a national media that has turned being a gloom merchant into something of a national sport. How can we sensationalise a situation to cast those involved or the circumstances surrounding them in the worst possible light? As the tired old phrase goes ‘good news is no news’. True, the prevailing trends are not what we would wish them to be. True, the global omens leave little room for optimism. And true, it may be some little time before we sense that relief is on its way. The fact, though, is that we have a number of fantastic businesses locally which, if properly supported and cherished, will play a key role in pulling us out of the doldrums. Confidence is the key, it is essential ingredient in developing the recovery While there may be little cause for dancing in the streets we should not be overdoing the gloom bit either.