Budget could provide a boost for business, says BCC

Date: 27th April 2009

The measures unveiled in the Budget last week should go some way to help provide a boost for UK-based businesses, it has been suggested.

According to the British Chambers of Commerce (BCC), chancellor Alistair Darling's new Budget, which was announced on Wednesday (April 22nd), could prove "helpful" to "young unemployed people".

David Kern, chief economist at the BCC, praised the measures that will provide jobs or training for those people aged 25 or under who are out of work.

He said: "The big story in the Budget was the state of the economy ... This time the main focus of attention was on the forecast because it was so dramatic."

However, Mr Kern pointed out that Chancellor Darling's predictions for future growth might be too optimistic and could lead to problems in the coming years.

"The problem for future years is that if, as is likely, economic growth in the years after 2010 will not be as high as he assumed in his Budget calculations then much more will need to be done to restore the public financial account," he commented.

He comments follow those of BCC director general David Frost, who said that the chancellor "appears to have understood" that the economy will be driven forward by business.

Taxation relief for loss-making companies was one of the many measures announced in the new Budget last week.