Responding to the Budget, BusinessLDN’s Chief Executive John Dickie, said:
“The Chancellor has shored up the public finances which is good for stability. But the Office for Budget Responsibility forecasts show that this statement will have little to no impact on growth in the round. The Government must now double down on regulatory and other measures to get the economy growing.
“The high spot was the Chancellor’s backing for key infrastructure projects, such as the Docklands Light Railway extension to Thamesmead, Lower Thames Crossing and Heathrow’s third runway. These will unlock billions of private investment, so it’s vital to get shovels in the ground quickly.
“Business will be relieved that self-defeating measures floated in recent weeks – such as the increases to the bank levy and a tax hike on limited liability partnerships – have been ditched. And the decision to introduce a stamp duty holiday for the first three years after a company lists on the London Stock Exchange will bolster the UK’s international competitiveness.
“But the decision to impose a new higher education levy on international students will hit one of our leading export sectors at a time when many universities are facing acute financial pressures. And the decision to tax private hire vehicles differently in the capital creates the absurd situation where Londoners pay more than people elsewhere for the same service. An overnight stay levy has the potential to benefit London and businesses but only if it is used to promote economic growth and the industry has a meaningful say in how the funds raised are used.
“More broadly, the entire Budget process needs a rethink. The lengthy run up has had a chilling effect on investment and hiring, while digesting the impact of this complex package of measures will also take time — and this in itself is a cost to business.”