Paul Butterworth, Interim CEO of Chambers Wales South East, South West and Mid, said:

“The Spring Budget announced by the Chancellor today is a step in the right direction for firms in the medium and long term. The announcement of a minimum of one investment zone in Wales is exciting for Welsh economic development and employment, while the ‘returniship’ scheme to reskill over 50s and reintegrate them into the workforce is a fantastic opportunity to bring skills and key experience back into the employment market.

“However, the short term for businesses still looks very difficult. Energy bills will increase in April as support is reduced, putting firms at risk; the super deduction will end; and corporation tax will rise to 25%. The announcement of full capital expensing is fantastic for businesses across the UK who want to invest in their own growth, but it remains to be seen how much this will mitigate the rise in business rates.

“The UK will not enter a recession this year and inflation is slowly reducing – this will be welcome news to businesses everywhere. However, there is still a long way to go and these milestones will be a cold comfort for SMEs without short term support.”