Chancellor’s Spring Statement offers little to incentivise business growth

Richard Blackmore from The East Midlands Chamber

The East Midlands Chamber has renewed its call for supportive policies to encourage firms to invest following the Chancellor’s Spring Statement.

The Office for Budget Responsibility (OBR) downgraded its GDP growth projection for 2026 from 1.4% to 1.1% but forecast an increase to 1.6% in 2026 and 2027, while unemployment is predicted to peak this year, before falling.

East Midlands Chamber Director of Policy and Insight Richard Blackmore said: “Business needs to be incentivised to invest and grow and while the Spring Statement was not a fiscal event, an opportunity was not seized to bring any sense of positivity for firms grappling with high costs.

“Unemployment in the East Midlands is at its highest point since 2020 at 6% and there was no suggestion of any improvement nationally this year, while OBR projections for GDP growth were sluggish at best.

“In the East Midlands we know the level of confidence among businesses is low, with our Quarterly Economic Survey showing nearly 4 out 10 of firms expect their profitability to worsen in the coming months.

“The Chamber’s Framework for Growth sets out specific areas policymakers should prioritise that would enable growth in the East Midlands. Unemployment needs to be tackled with urgency and that means investment in skills, making apprenticeships and training schemes easier for firms to access; planning must be sped up, infrastructure and transport connectivity need improvement and business rates must be brought down with a credible long-term solution, not a short-term sticking plaster.”