Industrial and trade strategies get cautious welcome from BCC

Times

a day ago

The leaders of regional chambers of commerce have given the government's industrial and trade strategies a tentative thumbs up.
'We'd be foolish not to feel more confident, but we have to step in with caution,' said Dawn Whitemore, chief executive of East Midlands Chamber, speaking at the British Chambers of Commerce's annual conference in London on Thursday.
Sir Keir Starmer used the event as a platform to announce the government's trade strategy, which leverages the three trade deals struck so far with India, the United States and Europe. It followed the release of the government's long-awaited industrial strategy on Monday.
Whitemore said the three deals 'are a start … But when you look at some of the details, it's not so great for our country. With all due respect, it's the start of something, but we haven't actually secured what I would hope for as a business.'
During his speech, Starmer said the trade strategy would expand the capacity of the government's export credit agency, UK Export Finance, by £20 billion, and assured the audience of business leaders that the government would reduce the frictions that have made trading overseas more difficult.
Ruth Ross, chief executive of Shropshire Chamber of Commerce, said the publication of the trade strategy meant she and her members knew what they're 'playing with' now. However, 'it doesn't mean there's any less red tape', she added.
Ross said: 'Businesses are struggling. You can't keep throwing costs at people and expect them to make money from it. We've got some of our members looking at all their costs and wondering if it's actually cheaper to make their products in another country, to then bring them back. That can't be right, can it?'
Other regional chambers were more positive about the impact of the government's plans. Colin Marr, chief executive of the Inverness Chamber of Commerce, said both strategies were 'going in the right direction' and that the government had produced something 'sensible, relatively accountable and set relatively good targets'.
Marr said that there was not enough information yet about how businesses would navigate the trade strategy, but that chambers of commerce would be there to help when they did.
'I can be very complimentary about the industrial strategy and the trade strategy, but the national insurance burden is enormous. What we're seeing now is people beginning to slow down employment — and that's not good for anyone,' Marr said.
The prime minister acknowledged the burdens that have been placed on businesses following the last budget's increase in taxes and costs.
• 'Freeze taxes' says business lobby after national insurance hit
In her speech, Shevaun Haviland, director general of the British Chambers of Commerce, warned the government that taxing businesses further could endanger its 'growth mission', after research conducted by the lobby group showed businesses have made or plan to make redundancies due to national insurance increases.
Lucy Druesne, deputy chief executive of Kent Invicta Chambers of Commerce, picked up on this point, saying that despite some 'good signs' it was vital that 'businesses don't pay the bill again'.