Businesses are looking for help to hire and invest. The Chancellor delivers his Autumn Statement today his second-last major economic policy statement before the general election next year.
It is eagerly awaited by a business community desperate for support, and anxiously anticipated by a Conservative Party hoping that its measures to boost the economy will keep it in government.
Business wants less bureaucracy to access funds needed for growth, and as usual has produced a lengthy wish list.
Companies small and large are hoping for a lot more than crumbs from the table today.
Surely there will be something for all of them, but last night’s announcement by the Chancellor of extra help for SMEs signalled that a bigger slice of the cake would be cut for small and medium sized enterprises.
Their big gripe is that it’s too difficult to borrow money to put new products and services on to the market and expand their existing operations.
This is surely the sector that needs most encouragement, as in Britain SMEs are best placed to deliver the measures agreed by G20 leaders in Brisbane to raise global output by 2018.
It is a theme that has been picked up by the Confederation of British Industry, whose director-general John Cridland called for more investment for the sector in a pro-growth Autumn Statement.
The annual investment allowance for small businesses, which provides tax benefits to encourage business investment in new plant and machinery, should rise to £250,000, they think.
The AIA will fall from £500,000 to £25,000 in 2016, and the CBI sees this as a structural weakness in the UK economy that needs to be addressed to fulfil Britain’s long-term growth potential.
The theme has been picked up by the Scottish Retail Consortium, whose director David Lonsdale thinks that measures which encourage businesses to hire and invest, and which put money in people’s pockets, should be at the heart of the Chancellor’s plans.
The retail industry is Scotland’s largest private-sector employer providing 257,000 jobs, equating to 14% of the non-Government workforce.
Labour-related outgoings account for the largest business cost facing most retailers.
The SRC director believes the Autumn Statement should ensure that employment costs remain reasonable, particularly in light of recent changes to pensions enrolment. After all, 164,000 Scots remain out of work.
Retail is proud of its ability to bring people with limited qualifications or work history into the industry and set them on a career path.
The majority of adult hourly paid employees in retail earn above the minimum wage.
Many retailers provide a total reward package of pay, benefits, discounts and progression which are greatly valued by staff.
The industry is sensitive to movements in the national minimum wage (NMW), however.
The SRC supports the NMW, but future decisions should take account of economic conditions and be underpinned by affordability, visibility and certainty.
The independence of the Low Pay Commission should be protected.
Retail can contribute more to the economy if the tax system is competitive. Overhauling the business rates system and making it more responsive to the state of the economy would increase retailers’ confidence in investing in premises, creating jobs and reviving high streets.
* One piece of good news for the Scottish economy came this week with the UK Government’s £290 million plan to part-dual the A1 north of Newcastle.
Not only will it help rebalance the economy of the north east of England, as stated by Prime Minister David Cameron, it will also help transport links to and from the east of Scotland.
The majority of the A1 in Scotland is already dualled, and the Scottish freight transport industry will be hoping the new investment will make it easier to reach the bigger markets of the south.