Chancellor’s Autumn Statement: How Harrogate business leaders reacted and why they fear the future

While welcoming some aspects of today’s announcement by the Government as it seeks to recover its credibility with the financial markets – and deal with a range of economic problems – traders’ leaders said the overall picture for growth remained gloomy.

David Simister, chief executive of Harrogate District Chamber of commerce, said support in the form of the energy price cap and business rates relief simply on their own were insufficient.

In particular, he was concerned about the future of small businesses and the hospitality industry.

"When at the weekend the Chancellor said that taxes would have to rise, he wasn’t exaggerating. It was exactly as he previewed it,” said Mr Simister.

“While it will no doubt have reassured the markets, there seems very little to support businesses when they need it most.

"The cost of running business will continue to rise and these increases will have to be passed on to the customers, who in turn are worse off with soaring inflation and eye watering energy prices.

“However, there was one flickering light of comfort for those businesses who pay business rates, with a £13.6bn business rates relief package, which will help stave off the rise in the charge set to take place next April.

“That said, I’m afraid to say many businesses are looking at a very bleak future, and as we heard at our meeting on Monday from the Bank of England’s Yorkshire representative, we are in for a lengthy recession with interest rates rising even higher.

“Small business suffer most overall.

"And hospitality, which is a big local employer will suffer further unless it passes on increased costs, wage food and energy costs, which in turn may reduce footfall.”

Harrogate BID’s worries were echoed, too, by Harrogate Business Improvement District (BID).

Harrogate BID chair Sara Ferguson said: “There was little in today’s Autumn Statement to boost our high street economy.

“The only good news for the high street is a £13.6bn business rates relief package, designed to soften the blow of April’s suspected rise, which will help a large number of businesses.

“However, as everyone is going to have less disposal income, this will mean consumers pairing back on their spending, which will shrink the economy further.”

Mr Hunt had said today's three priorities were "stability, growth and public services".

At the national level, charities and business experts, while supporting some of today’s measures, said the results of the Autumn Statement left the UK as a whole looking at a worsening picture despite some of the Chancellor’s support measures.

The return of austerity was condemned by James Meadway, director of the Progressive Economy Forum, who said: “This screeching U-turn in government policy – contradicting promises to end austerity and its commitments in the 2019 manifesto – is being driven by a “fiscal black hole” which is not a hard economic fact."

Just a matter of weeks since ex-Prime Minister Liz Truss and Kwasi Kwarteng’s “mini-budget” created alarm in the financial markets, the new Chancellor’s actions have created no panic.

But today saw a tweet from Child Poverty Action Group saying: “It’s gone past the point of choosing between heating and eating now. People can’t afford to do either.”