Comprehensive spending review investment welcomed but should not bring tax burden says Chamber

East Midlands Chamber has cautiously welcomed measures set out by the Chancellor in the government’s Comprehensive Spending Review, but warned that funding must be fully costed to prevent tax hikes.

£2bn into AI and £1.2bn into apprenticeships and training were among announcements in the first Spending Review since 2021, along with increased investment in housing, nuclear power, the NHS and Defence.

Director of Policy and Insight Richard Blackmore said: “The starting position is that all investment is welcome. However, in what’s been a tough period for businesses, investment in defence, new homes and infrastructure is welcome but it’s essential that spending has been properly costed, so there’s no risk of additional cost burdens for business.

“With businesses still absorbing the announcements of the last Budget – which has meant higher staffing bills from things like raised National Insurance contributions and a higher national living wage – any additional cost would be painful.

“Rolls-Royce getting backing to build Small Modular Reactors is good news for Derby’s economy, for job creation in the region and for the wider supply chain, as is investment into nuclear fusion in Nottinghamshire.

“For businesses looking to recruit, news of investment in apprenticeships and training is encouraging, especially when businesses are finding it so hard to recruit.  Nearly 7 out of 10 East Midlands firms told us in our Quarterly Economic Survey that they’ve struggled to fill positions.”