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Osborne, George

Welsh Businesses Urge Transport and Tax Reform Ahead of Emergency Budget

Strategic Insights

— 2 min read

Business leaders and organizations in Wales are pushing for immediate action on transport and tax reform ahead of Chancellor George Osborne's Emergency Budget on Wednesday. The Chancellor will make his first budget under a majority Tory government in 18 years, sparking concerns about the impact on businesses across the UK. Key figures in Wales' business community are calling for a comprehensive approach to tackle the country's infrastructure and tax challenges.

Key Takeaways:

  • The Federation of Small Businesses in Wales (FSB) is urging the Chancellor to reform the tax system to simplify it and encourage investment in research and development, citing schemes like the Seed Enterprise Investment Scheme and Entrepreneurial Relief as positive examples.
  • The FSB is also seeking further improvements in exports, with a stronger role for the British Business Bank in delivering export finance accessible to small firms.
  • Long-term infrastructure investment is essential, with the UK's infrastructure having suffered from under-investment and a lack of integration regionally, detrimental to productivity and growth across the UK.
  • The FSB supports efforts to increase competition in the business banking market and calls for improved credit data sharing, credit 'passports,' and equal access to the payment system.
  • Keith Palmer, CEO of the South Wales Chamber of Commerce, stresses the importance of transport infrastructure in driving business growth, job creation, and economic prosperity, and urges the UK government to take drastic steps to improve transport networks.
  • Palmer also advocates for irreversible action from the UK government to construct a new runway at Heathrow and complete the electrification of the Great Western Mainline within the proposed timescale.
  • Richard Selby, Director at Pro Steel Engineering, emphasizes the need for joined-up thinking between the Welsh and UK Governments, citing the importance of investment in infrastructure and the current lack of certainty around pipeline work.

Statistics:

  • The UK Government's aspiration of £1 trillion in UK exports by 2020 is a challenging objective, but essential for growth and jobs.
  • Wales' business confidence lags behind other parts of the UK, according to the FSB's research, which highlights the need for investment in projects like the full electrification of the South Wales mainline to Swansea.
  • Recent ONS statistics show a decrease of 0.2% in the construction sector's output, emphasizing the need for action to stimulate the industry.

Sources:

  • Janet Jones, chair of the Federation of Small Businesses in Wales (FSB) policy unit: stated in the article
  • Keith Palmer, CEO of the South Wales Chamber of Commerce: stated in the article
  • Richard Selby, Director at Pro Steel Engineering: stated in the article
  • Federation of Small Businesses in Wales (FSB): website (date not specified)
  • Office for National Statistics (ONS): website (date not specified)

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