Responding to the Autumn Statement, Robert Lloyd Griffiths Director of Institute of Directors in Wales, said:
“This was a sensible and sober Autumn Statement. The Chancellor’s attempts to increase productivity by investing in transport infrastructure, broadband and housing are welcome, but businesses would also have liked to have seen measures to encourage them to invest now. The OBR predicts that next year will be the low point for growth, so we are surprised that amidst all of the political and economic uncertainty there weren’t many measures to help ‘just managing’ businesses now.
“The Government will be borrowing heavily over the next few years, so it’s a shame that they couldn’t use more of the fiscal headroom to encourage investment through measures such as raising the Annual Investment Allowance, which could deliver productivity increases sooner.
“We weren’t expecting anything flashy today, and we didn’t get it, but that’s not necessarily a bad thing from the man in charge of the economy. Our members will welcome the fact that there will only be one Budget a year in future, as too much tinkering only makes the tax system more complex.
“From a Welsh perspective, we very much welcome Mr Hammond’s renewed commitment to infrastructure and his pledge to commit a further £400m for improvements in Wales, through the Barnett formula because of increased spending on transport in England.
“His proposals for superfast broadband here is also a very positive development and a necessity we reinforced through our Ten Point Plan for the Economy earlier this year as a way to benefit Welsh businesses of all sizes.
“His ‘recommitment’ for the government to support the Swansea Bay region city deal and a similar proposal for North Wales are both initiatives which have continually received our backing. As regards Swansea, we would, of course, have liked to have seen reference to Swansea Bay Tidal Lagoon, but we recognise that the Hendry Review is yet to be published, and we hope without delay. We have consistently supported this game changing project for the Wales and the wider UK economy.”