Autumn Statement reaction: Ed Rimmer, Time Finance CEO
Ed Rimmer, Time Finance chief executive officer
Prompt Payment & Cashflow Review
“The chancellor spoke of supply side reforms in this year’s Autumn Statement, and announced measures to clamp down on late payment practices. This begs the question, what about the businesses that don’t have large government contracts? Should the same payment practices not apply to them? Today’s announcement is another step in the right direction in clamping down on poor payment practices, but it doesn’t go far enough for SMEs. Earlier this year we surveyed our SME community to find that one in three businesses are waiting between 60 and 120 days for their invoices to be paid with SMEs owed on average £250,000 in unpaid invoices. That’s a widespread problem and the chancellor missed an opportunity to give businesses clarity on its Prompt Payment & Cashflow Review and the further measures that will tackle this issue.”
Skills
“In last year’s Spring Statement the chancellor promised UK businesses that investment into the widening skills gap would follow, yet today’s announcements may have left many feeling short-changed. To overcome the UK’s skills shortage there needs to be a systemic shift in the training and employability initiatives available to young people, and those looking to acquire new skills.
Today’s announcement of £50m investment to help develop and pilot apprenticeships in key growth sectors – such as engineering – will be welcome news to many, but across the board these measures are too speculative and simply aren’t enough to stimulate growth and meet the rising demand for an experienced workforce. To fulfil the chancellor’s promise of today’s Autumn Statement being one for growth, businesses needed to see more far reaching measures to tackle the skills gaps they are experiencing now.”
Business Tax Relief
“What businesses needed from today’s Autumn Statement were conditions for growth and while there is clearly more to be shared on the chancellor’s 101 measures to boost businesses, there is cause for businesses to sit up and take notice.
“The chancellor hailed his tax relief package for business investment as the single biggest business tax cut in modern British history, maximising business investment, increasing productivity and boosting GDP. This is a measure the OBR predicts will create £3bn investment a year.
“For businesses, this is very welcome news, but tax is not the only barrier for businesses looking to invest. There are many businesses that simply don’t have the working capital to invest in growth. The chancellor suggests that this business tax cut will prevent the need for borrowing, which simply isn’t realistic for businesses, many of which are still battling high overheads. If the chancellor wants businesses to grow, increase productivity and contribute to GDP, he must recognise that borrowing to invest is a viable business strategy, albeit one that will certainly be boosted by this tax relief package.”
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