Sheffield Chamber of Commerce’s Response to the 2024 Autumn Budget

30th October 2024

Sheffield Chamber has welcomed the Chancellor’s move to lower business rates for under-pressure high street retail, hospitality, and leisure businesses but voiced concern about the impact on small businesses generally.

Louisa Harrison-Walker, Sheffield Chamber of Commerce’s Chief Executive, said that whilst today’s Budget offers hope for certain industries, increases in Employers’ National Insurance Contributions will heap additional strain on the region’s businesses, particularly SME’s.

“Small businesses power the UK economy, drive innovation, create jobs, foster local communities, contribute significantly to economic resilience and growth across the nation, but particularly in Sheffield, where 98% of businesses are SMEs.

“If they struggle to operate, and grow, our local investment falters, our local economy stagnates, and our innovation at a regional level slows down.”

Whilst an increase to employer's NIC will be a challenge, as well as the 6.7% increase in the National Living Wage, the increase in Employment Allowance thresholds from £5K to £10K meaning that smaller businesses are supported with employment costs, is welcomed. 

Investment was a key driver in this Autumn Budget, with plans to raise infrastructure spending, sector-specific business rates relief and with the annual investment allowance and R&D being retained, the Chancellor aimed to take the bite out of significant cost burdens for business.

Louisa added:

“It is hoped that, while many firms find it more challenging to invest and recruit in the short-term, the Chancellor’s longer-term framework will provide stability for the economy sooner rather than later.

“Ultimately, much now rests on the Government’s next steps to build business confidence. We need action rather than words. As such, time will tell how this budget truly affects the business community.”

Sheffield Chamber noted investment in regional and Northern Transport. 

The pledge to increase local transport funding, included a cash injection into Supertram. 

“Whilst the Northern rail scheme currently doesn’t include Sheffield, its assistance in connecting the north is a much-needed start, but we mustn't be overlooked, solid transport infrastructure is a vital part of a thriving economy.

“If you want to grow business, support skills development and positively impact wellbeing in South Yorkshire, improving our regional, national, and international connectivity is essential.”