Businesses in Dorset have urged the Chancellor to focus on long-term sustainable growth rather than pre-election giveaways in the Budget.
Dorset Chamber of Commerce and Industry (DCCI) has called for greater measures to support business investment and exports in the annual announcement this Wednesday (March 18).
The Budget – the most important economic statement that the chancellor delivers every year – comes less than a month before the general election on May 7.
Ian Girling, DCCI chief executive, said: “The Chancellor must concentrate on the job in hand, to deliver long-term sustainable growth which future generations in Dorset can rely on.
“Yes, he now has more wriggle room with a rise in tax receipts and falling inflation, but we cannot become complacent.
“We urge him to use this fiscal breathing space for the benefit of business rather than succumb to the temptation of dishing out too many pre-election sweeteners.
“While consumer spending is always important and has helped drive growth, businesses in Dorset and nationwide also need more support, particularly for investment, improved access to finance and exports.
“This will help further drive growth as we move into the next phase of the economic recovery and rebalance the economy in the long term.”
The British Chambers of Commerce (BCC) has upgraded its UK GDP growth forecast for the next two years, from 2.6% to 2.7% in 2015, and 2.4% to 2.6% in 2016, due to stronger than expected growth in household consumption and services.
The BBC, of which DCCI is the only accredited chamber in Dorset, has also predicted growth of 2.6% in 2017.
Mr Girling backed a BCC demand for measures to support long term business investment and business rates reform.
He said: “We are also looking to the chancellor to provide more scope for a complete overhaul of business rates rather than simply tinker at the edges.
“Other measures we would welcome include relief on national insurance for exporters or companies which supply exporters as well as increased annual investment allowances for plant and machinery.”
BCC proposals include a long-term annual investment allowance at £500,000 that allows companies to invest in plant, machinery and premises improvements.
DCCI is the voice of business in Dorset with more than 750 members, representing nearly 40,000 employees.
Prime Minister David Cameron told Mr Girling to focus on exports when he visited Poole in December to address business leaders, including DCCI members.
