Doncaster Chamber boss calls for 'light at end of tunnel' from Rachel Reeves

Responding to her announcement, Doncaster Chamber of Commerce is urging the Labour Government to think about how it can ease the mounting pressures that are facing both businesses and those who are set to be impacted by yesterday’s welfare reforms.

Ms Reeves has set out her latest plans for the UK economy – including an increase in defence spending, a new target to reduce civil service administrative costs, and investment in construction training to get the country building again.

A spokesperson for Doncaster Chamber said: “While some of these proposals are sure to be welcomed by the business community, the outlook still remains incredibly challenging.

"Not only will employers soon have to contend with higher National Insurance contributions and a rise in the living wage, but the Government’s own forecaster (the Office for Budget Responsibility) has halved its growth projection for 2025.”

Against this dispiriting backdrop, Doncaster Chamber is emphasising the need for light at the end of the tunnel.

Speaking about this, the organisation’s Chief Executive, Dan Fell, said: “Firms are realistic about the state of the UK economy and appreciate the rationale behind the tough decisions that this Government has made since its Parliament began last summer.

"That being said, there needs to be something to alleviate the mounting pressures that employers are under.

“After all, they have already been shouldered with significant tax increases and, as a result, we have seen their investment intentions weaken.

"According to the Office for Budget Responsibility, domestic output around the country has stagnated since the Autumn Budget and, closer to home, we know that business confidence levels here in South Yorkshire have experienced a sharp drop too.

“Across various forums, our members have been very clear that they need to see a silver lining and that they need to see it soon.

"This idea has been reinforced in many of our meetings with Government officials, whether that be our roundtables with local MPs or even the discussion we had with the Chancellor herself last month.

"In short, it is feedback that Westminster has had plenty of chance to heed and we hope that they will act accordingly in the very near future.

“Signing off new infrastructure projects, pursuing deregulation and speeding up planning reform would all be good ways to start.

"However, in light of the announcements from yesterday’s Spring Statement, we believe that employment should be treated as a top priority right now.

“The forthcoming changes to the disability benefits system may have been intended to get people back into work, but the reality of the situation is that such punitive measures are not going to make claimants any more employable than they otherwise would have been previously.

"What’s more, the business community has been put through the wringer itself in recent months, with increased corporate taxation forcing them to become leaner and offer fewer jobs.

"So, it really does feel like both sides of the employment relationship are being hammered right now, and that it’s all stick and no carrot.

“We know from our regular interactions with members — as well as our broader insight gathering activities — that many businesses are truly progressive and keen to embrace strong talent wherever it may come from. And that, of course, includes those who are furthest removed from the labour market.

“Yet in this difficult climate, when they are already feeling the pinch, we cannot reasonably expect firms to do all the heavy lifting in terms of getting people back into the workforce.

"At least not without some kind of targeted support or tapered incentives.

“If this Government is indeed serious about prioritising economic growth, then it needs to create the right conditions for businesses and their prospective employees to thrive.”