WEBVTT - British Chamber of Commerce Chief Talks UK Business Confidence

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<v Speaker 1>The Chancellor announced a raft of infrastructure projects with forms

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<v Speaker 1>of pensions, benefits and trade deals yesterday. Joining us now

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<v Speaker 1>is someone who was in the room when she made

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<v Speaker 1>that speech, Chevoron Havlin, Director General of the British Chambers

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<v Speaker 1>of Commerce. Good morning, Chavorn, thanks for your time. You

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<v Speaker 1>have called this a clear marker. You welcomed the Chancellor's

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<v Speaker 1>push for growth, but it won't deliver in the short term,

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<v Speaker 1>will it.

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<v Speaker 2>It will deliver in the short term and lots of

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<v Speaker 2>different places. Remember this is a really difficult time for business.

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<v Speaker 2>Natal insurance increases are going you know, coming in place

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<v Speaker 2>in just a few weeks, so tax rises for all businesses.

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<v Speaker 2>So it was really good to see the Chancellor focus

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<v Speaker 2>on economic growth. Airport expansion, Heathrow, Doncaster, Sheffield new Road,

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<v Speaker 2>rail low attempts crossing East West rail and rebalancing the

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<v Speaker 2>planning system as you were outlined.

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<v Speaker 3>So those things will have not just there are a great.

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<v Speaker 2>Signifier, global signifier of confidence and the direction we're traveling in.

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<v Speaker 2>You know, big infrastructure projects, as you say, take a

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<v Speaker 2>long time, so you need to start now. But remember

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<v Speaker 2>that indicator for the small and medium sized businesses in

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<v Speaker 2>those supply chains will already give them confidence to think

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<v Speaker 2>about investing now and growing their businesses now so they

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<v Speaker 2>can supply those into those infrastructure projects.

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<v Speaker 4>But Tavon, is it going to be enough. Those businesses

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<v Speaker 4>are worried about how they're going to pay for the

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<v Speaker 4>national insurance rise coming in a couple of months time.

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<v Speaker 4>The budget has been very difficult and we've seen that

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<v Speaker 4>reflected in both business and consumer confidence figures.

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<v Speaker 3>The budget has been very difficult.

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<v Speaker 2>It has, and especially if you have a business with

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<v Speaker 2>a large employee base, it is going to be very hard.

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<v Speaker 2>Our businesses are telling us they're going to have to

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<v Speaker 2>put up prices if they can. A lot of them

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<v Speaker 2>have already put up their prices. That's going to be tricky.

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<v Speaker 2>They're going to take it in their margin, which means

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<v Speaker 2>lowersment or they're going to slow down recruitment and none

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<v Speaker 2>of that is good. But you remember, at the same

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<v Speaker 2>time in the budget the Chancellor also said to mitigate

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<v Speaker 2>against those issues, we need more opportunity for business and

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<v Speaker 2>she talked about getting Britain back to building homes, hospitals,

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<v Speaker 2>energy infrastructure, and so you know, the announcements yesterday are

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<v Speaker 2>a really good step in that direction.

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<v Speaker 3>They're a really good indicator for that.

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<v Speaker 2>Okay, things that infrastructure projects, it's not just local supply

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<v Speaker 2>chains and local economic development. Often supply chains run all

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<v Speaker 2>over the country. Connectivity, airport expansion. That's fantastic for trade,

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<v Speaker 2>you know, moving our goods around the world, and it

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<v Speaker 2>also global competitiveness.

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<v Speaker 1>Okay, but she did not reverse the tax increases on

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<v Speaker 1>business from the October budget. I mean, okay, you can

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<v Speaker 1>understand why she might not do that, but she will

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<v Speaker 1>be under pressure to do something in the spring statement

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<v Speaker 1>potentially if her fiscal head doom disappears, it's either going

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<v Speaker 1>to be cuts to government or it's going to be

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<v Speaker 1>more tax increases. Are you expecting more tax increases to come?

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<v Speaker 1>Do you want her to do, let's say something that

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<v Speaker 1>would be much more business positive, lower corporation tax in Britain.

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<v Speaker 2>We well, I don't know what she's going to do

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<v Speaker 2>in the spring, and we're definitely not expecting any tax

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<v Speaker 2>increases for business. She's been pretty clear that that was

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<v Speaker 2>a what did you call it yesterday, once in.

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<v Speaker 3>A generation tax increase.

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<v Speaker 2>However, there are other places where she can help business,

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<v Speaker 2>so we've asked her to accelerate her review of business rates.

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<v Speaker 2>Business rates are the tax that you pay on property,

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<v Speaker 2>so really hard. If you're on the high street, you know,

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<v Speaker 2>before you've even sold a single product, you're paying tens

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<v Speaker 2>of thousands in tax. So how she can review business

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<v Speaker 2>rates and change those more quickly to help our high streets.

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<v Speaker 3>And actually, you.

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<v Speaker 2>Know the other thing is the quickest way to grow

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<v Speaker 2>our economy is through trade. Our biggest trading partner, the EU,

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<v Speaker 2>is still really hard to move goods over the border there.

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<v Speaker 2>What is the government doing more quickly to help businesses

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<v Speaker 2>who are trading around the world.

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<v Speaker 4>Okay, Chavon, thank you very much for joining us. Chavonne Havlan,

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<v Speaker 4>Director General of the British Chambers of Commerce,