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Rishi Sunak yesterday told how his aim is to protect people’s lives and livelihoods, including prioritising jobs, businesses and public services. Rain Newton-Smith, the Confederation of British Industry’s chief economist, said stark forecasts pointed to “tough times ahead”, adding: “The Chancellor has made some bold autumn decisions to power a spring recovery. “The spending review lays the foundations for a brighter economic future. A new National Infrastructure Bank, long-term funding for innovation, and a comprehensive plan for creating jobs and renewing skills are just some of the building blocks needed to deliver on this vision.

“Ambition must be matched by action on the ground. The Government’s commitment to build, build, build must be delivered now, and there can be no let-up in the support for firms facing new Covid restrictions.”

The British Retail Consortium (BRC) was “encouraged” by the Chancellor’s consideration for more rates relief for businesses impacted by the pandemic.

The BRC’s chief executive Helen Dickinson said: “Many retail businesses have been shuttered for the past month, depriving them of £8 billion in sales. A return to full business rates liability in April would be impossible for some firms to meet and freezing the multiplier in 2021/22 does not solve this problem.

She urged the Government to adopt their proposal for business rates relief at 50 per cent. 

Mike Cherry, the national chairman of the Federation of Small Businesses, told how the review was a “missed opportunity” to support smaller businesses.

He called the economic forecast “stark”, adding the country’s hopes of recovery hinged on the success of the smaller firms.

Mr Cherry said: “This spending review was a missed opportunity to help small business owners – not least those who have been excluded from support measures – and brings the need for a pro-business Spring Budget into focus. 

“Rather than being a tax-raising budget, it must have growth and recovery at its heart.

“We need to see far more from this Government where reducing tax on enterprise, facilitating start-ups and bringing down operating and employment costs are concerned.”

Adam Marshall, the director general of the British Chambers of Commerce, said the review came at a “critical time” for businesses fighting for survival amid the pandemic.

He said: “Measures to help people return to work at this challenging time will help limit long-term unemployment but Government must waste no time in putting these plans into action. 

“Government and business will need to work together to re-train and re-skill the UK workforce.

“With an uncertain winter ahead, the Government will need to maintain an open mind on providing further support to businesses struggling to survive.”

Paul Cherpeau, the chief executive of Liverpool Chamber of Commerce, welcomed the additional investment, adding there were “no quick fixes” to the damage that Covid has wreaked on the economy.

He said: “The Chancellor’s pledge to protect jobs, businesses and livelihoods is central to our recovery and we welcome this additional investment.

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Comment by Annie Gascoyne

Stark forecasts point to tough times ahead. Yet against the most difficult of backdrops, the Chancellor yesterday made some bold decisions to power a Spring recovery.

These include plans for a new National Infrastructure Bank and a comprehensive plan for creating jobs and renewing skills. With the right remit, the bank can crowd in the private finance crucial to delivering new projects.

Coupled with existing commitments on green investment and skills, these are the right elements for an innovative, dynamic and competitive UK.

But these ambitions must be matched by action on the ground. 

Refreshing our ageing infrastructure can repower the economy, connect more people and create job opportunities. Putting money into roads, broadband and clean energy will help do just that.

There was more help for communities too. Local authorities and businesses have been waiting to hear how EU structural funding will be replaced after 1 January. They will be encouraged to see pilot programmes launched for the UK Shared Prosperity Fund alongside a £4bn Levelling Up Fund for English regions.

The Review also delivered a positive settlement for research and development, with a big uplift in spending this year, and plans for the years ahead too.

Next year’s Budget will be an opportunity to cement these commitments, especially regarding business innovation.

All told, amid the gloomy economic picture, there was plenty in the Chancellor’s statement to warm those firms able to lift their heads from immediate crises this winter. Alas, we know so many are still reeling from the economic effects of the pandemic.

So, as towns and cities discover which tiers they face as Christmas nears, there must be no let-up in support for firms facing COVID restrictions.

Firms need help to survive, and then thrive if they’re to play their part in making 2021 a year of recovery.

Next year sees the UK host both the G7 and COP26 – two huge platforms to showcase Global Britain following our departure from the EU.

With that in mind, reducing the aid budget risks sending the wrong signals. We hope the Government reviews this decision at the earliest opportunity.

Meanwhile, securing a deal with our biggest trading partner, the EU, can act as a catalyst for the business investment and innovation which will fuel greener, fairer growth across all UK regions and nations.

• Annie Gascoyne is the CBI Director of Economic Policy

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