Muted welcome by Highlands and Island Federation of Small Businesses (FSB) to Chancellor Rishi Sunak's 'opportunity missed' Spring Statement
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An opportunity has been missed by the UK Chancellor to help countless small businesses currently being overwhelmed by massive energy price hikes, according to a Highland business leader.
David Richardson, the Highlands and Islands development manager for the Federation of Small Businesses, made the comment in response to Chancellor Rishi Sunak's Spring Statement.
"With fuel poverty in the Highlands and Islands perhaps the highest in the UK, everyone here is feeling the pinch, but it must be remembered that small businesses have none of the protections of households, nor the negotiating power of big businesses."
“While a number of the measures in today’s Spring Statement from Chancellor Rishi Sunak will help smaller firms, our welcome for them is more muted than we would have liked," he said.
"For while they will undoubtedly buy Scotland’s small businesses a little breathing space, much more could have been done to help them absorb their rapidly rising energy costs.
"With fuel poverty in the Highlands and Islands perhaps the highest in the UK, everyone here is feeling the pinch, but it must be remembered that small businesses have none of the protections of households, nor the negotiating power of big businesses.
"We – the FSB – also argued for an increase in the employment allowance, and it is good to see that the Chancellor has taken this on board. His measure will help smaller firms absorb some of the increasing costs of sustaining jobs.
"Similarly, the reduction in fuel duty will help small businesses reliant upon their vehicles for their livelihoods – a very common feature of business life in this region – and it will help bring down the cost of holidays here slightly for the overwhelming majority of our visitors.
"In short, while beneficial, an opportunity was missed to bring real help to the countless small businesses currently being overwhelmed by massive energy price hikes.
"Action is still required on this front now, or we face witnessing some great businesses that struggled through the pandemic and survived, going to the wall just as things should have been getting better."
The UK economy is forecast to grow by 3.8 per cent this year, the Office for Budget Responsibility says, dropped from its previous prediction of 6.0 per cent.
The annual inflation rate was 6.2 per cent in February, and is likely to average 7.4 per cent for the rest of this year with a peak of 8.7 per cent in the final quarter.
Fuel duty will be cut by 5p per litre until March 2023.
Homeowners installing energy efficiency materials such as solar panels, heat pumps, or insulation will see VAT cut on these items from 5 per cent to zero for five years.
Local authorities will get another £500m for the Household Support Fund from April, creating a £1bn fund to help vulnerable households with rising living costs.
The income threshold for at which point people start paying National Insurance will rise to £12,570 in July. Mr Sunak said that was a tax cut for employees worth over £330 a year
Chancellor 'taking people for fools' over Spring Statement says north MP
