Not bad, but… That’s the verdict of businesses in the Borders to George Osborne’s latest Budget.
Anxious for any scrap of good news, the Scottish Borders Chamber of Commerce (SBCC) and the Federation of Small Businesses (FSB) highlight the proposed £2,000 National Insurance allowance for all employers.
James Aitken, SBCC convener, comments: “We welcome the change to employers’ National Insurance payments, though it’s something we would have hoped had happened before now.”
Graham Bell, chairman of the Borders branch of the FSB, adds: “Many of the measures outlined by the Chancellor show that he understands the potential of the UK’s smallest businesses.”
The National Insurance reduction, he says, “should not only benefit the smallest employers and prospective employers, but should also give a much-needed boost to the job market in 2014”.
Mr Bell hails the decision to cancel the proposed 3p rise in fuel duty and the reduction in corporation tax to 20p for larger companies, which he hopes will result in supply chain benefits for Scotland’s smaller firms.
However, both business organisations express disappointment with elements of the Budget. Mr Aitken is critical of the proposed measures to boost housing, saying: “At first glance, it does seem odd that the Chancellor has decided to take on the risk of lending to housebuyers, but not the risk of lending to small businesses. If this recession has taught us one thing, it is that the British economy should not be based on house sales.
“I’m also sure that many tradesmen in the Borders will be hugely disappointed that the Chancellor did not reduce VAT on home repairs and renovations.”
Mr Bell adds that Borders businesses hoping that the Budget would quickly unblock the small business finance market might be disappointed.
“The FSB in Scotland still looks forward to learning how the state-backed Small Business Bank will operate in practice,” he comments.
So the message to Mr Osborne from Borders businesses is: “Could do better.”