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London Chamber of Commerce and IndustryLondon Chamber of Commerce and Industry
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LCCI reacts to The Government's fiscal announcement

Friday 23 September 2022

Richard Burge, Chief Executive of London Chamber of Commerce and Industry (LCCI) said:
“The current economic headwinds we are facing are once in a generation and we are pleased that the government has at long last introduced measures that provide some short-term relief for London businesses, particularly SMEs, the lifeblood of London’s economy. Many of London businesses were only able to take a tentative step back from the brink following the announcement that the energy price cap will extend to businesses and the reversal to the rise in National Insurance. Many businesses will also cheer the scrapping of next year’s planned rise of Corporation Tax, which we hope will incentivise firms to invest in their company and their people. This will go some way to assuaging their concerns. However, there is no doubt that many will question the government loosening laws around bankers’ bonuses while simultaneously providing minimal support to small businesses who need support the most.

London and the UK now need a period of policy stability to allow markets to settle and for businesses to regain the confidence to invest, train and expand during this turbulent and unpredictable period. It is imperative that London has a champion who is willing to support small businesses which have been who have been hit hardest by the last two-and-a-half-years. It is our hope that today’s announcement is the precursor to the government enacting a long-term, credible economic plan that will unleash the full economic potential of London and help drive forward our national economy.”

On VAT, Richard Burge, Chief Executive of London Chamber of Commerce and Industry (LCCI) said: “We welcome the announcement of the return of VAT free shopping for tourists visiting the UK. This will provide a desperately needed boost for London’s tourism, retail, and hospitality sectors, which have suffered immeasurably over the past couple of years. London acts as the gateway to the rest of the UK and by encouraging foreign visitors to spend money in London’s cash-strapped SMEs, the lifeblood of our economy, there are positive knock-on effects for the entire country.”

ENDS

LCCI reacts to The Government's fiscal announcement

Whilst some measures are beneficial, London businesses need longer term support