Emergency Budget 2010: the business reaction
Emergency Budget 2010: the business reaction
Business leaders have given their initial reactions to the Emergency Budget announcements, following Chancellor George Osborne's speech to the House of Commons.
Richard Lambert, Director General of the Confederation of British Industry (CBI) said that the Chancellor had 'achieved his twin objectives of setting out a credible plan for the public finances and producing a convincing growth strategy for the longer term'.
'There was clear recognition in the Budget of the role that business needs to play in getting the economy back into shape, and generating the jobs and wealth needed to sustain economic recovery', he added.
The Federation of Small Businesses (FSB) also welcomed many of the Chancellor's announcements, but expressed disappointment that the rise in employer national insurance contributions was not completely reversed.
John Walker, FSB National Chairman, said, 'We welcome moves to give a national insurance holiday to start-up firms, but are concerned that with 70% of firms operating below capacity, those businesses already trading will not be helped'.
The British Chambers of Commerce (BCC) agreed that the moves to cut the deficit will have 'positive effects' on business and investor confidence, and welcomed the Chancellor's message that Britain is 'open for business'.
David Kern, BCC Chief Economist, said, 'Today's Budget could be a defining moment in Britain's economic history', although he warned that the latest economic growth forecasts from the new Office for Budget Responsibility were still overly optimistic.
Meanwhile, the TUC described the Budget as 'dangerous and devisive', and expressed concerns that the spending and benefit cuts, combined with the increase in VAT, will slow the recovery, and could even stop it in its tracks.
Brendan Barber, TUC General Secretary, said, 'This Budget was economically dangerous and socially divisive. The one thing we can now say is that we are very definitely not all in this together'.
