For most businesses the Spring Statement was a non-event because the Chancellor isn’t listening, says TERRY MURDEN
Oh dear. Who on earth is advising the Chancellor about growing the economy? I’m beginning to think the Tories, or Nigel Farage’s Reform or maybe even the SNP must have infiltrated Labour’s policy groups, forming an economic trojan horse to spread ideas that will destroy the party from within.
It’s as good a theory as any other I’ve read as increasingly frustrated business leaders try to find some encouragement in the statements emanating from the Treasury’s deluded commander-in-chief.
I’ve yet to come across anyone who has said: “Rachel Reeves is doing a good job”. Indeed, putting these words into the same sentence is becoming something of an oxymoron. There just seems no end to the bewildering failure to join the dots and make any sort of coherent picture.
She speaks about creating more jobs, then puts up the cost of doing business so that many firms are cutting jobs and may even be forced to close. She talks about growing the economy then admits the forecast for this year has been cut in half.
Investment in housebuilding and defence will boost firms and create jobs, but that is a long game and, as Liz Cameron of the Scottish Chambers of Commerce says, businesses want help today, not tomorrow.
Harry Mills, director at Oku Markets, summed up the Chancellor’s Spring Statement by witheringly describing it as “a nothing-statement… absolutely pointless.”
Stephen Montgomery, spokesman for the Scottish Hospitality Group, issued a comment that was clearly written while he was sticking pins in his eyes in order to check he really had just watched the Chancellor once again miss the vital penalty kick.
“The hospitality sector is increasingly losing confidence in the Chancellor of the Exchequer – it will only be regained if she finally listens,” he said.
Colin Wilkinson, managing director of the Scottish Licensed Trade Association, was another who must have been thinking that even the Tartan Army doesn’t see its hopes dashed this often.
“Following the shockwaves caused by the UK Budget in October 2024, any hope of some respite in the 2025 Spring Statement has disappeared,” he wrote.
It got worse. “The darkest days of lockdown are now a distant memory for many,” he said, “but not for the licensed hospitality sector which continues to suffer from a severe hangover of lost trade, fewer customers, staffing issues, squeezed profit margins, and shattered dreams…”
It could have been a Tartan Army lament, but this is typical of how the SME community responded to a Chancellor who – as I have said previously – seems to focus only on big business, City institutions, grand projects and long-term forecasts that something will come right by the time Labour begs us all to return the party to power in 2029.
As things stand there is fat chance of that happening. John Swinney’s departing army of MSPs must be wondering if they’re leaving Holyrood too soon. The way things are going the SNP looks a good bet for another term.
Businesses across the SME sector were prepared to accept that the overall plan was not going to change. No one could seriously expect the Chancellor to reverse her Budget announcements, particularly the hike in National Insurance Contributions. Imagine the uproar that such a u-turn would have provoked from firms which have just cut jobs, or hiked wages and prices to cover it.
A sensible Chancellor, however, would have smelled the coffee and realised that the increases in business costs have been badly-received and done something to ease the pain. Perhaps a tweaking of inheritance tax or reinstatement of Entrepreneurs’ Relief. Even a VAT holiday. It was not to be. The medicine will not be sweetened.
As we all know, Ms Reeves has a few questions to answer about her CV, but it’s just as well that she didn’t choose to be a doctor.
Terry Murden was Editor and Business Editor at The Sunday Times Scotland, Business Editor at The Scotsman, and Business and City Editor at Scotland on Sunday. He is now Editor of Daily Business.
The following comments appeared on LinkedIn:
“I would agree” – James Watt, Co-founder of Brew Dog
“This article is spot on:” – Justine Mitchell, Business growth consultant
“Spot on and Harry Mills nails it too” – Dominic Hiatt, Newspage founder
“As we all know, Ms Reeves has a few questions to answer about her CV, but it’s just as well that she didn’t choose to be a doctor” Love it Terry. Stored away for future use!!