Commenting on the Labour Party Manifesto, Dr Adam Marshall, Director General of the British Chambers of Commerce (BCC), said:

“High personal taxation, sweeping nationalisation and deep intervention in business decision-making are not the hallmarks of an ambitious and enterprising society. Taken together, some of the headline propositions in the Labour Party manifesto will give business communities across the UK real cause for concern.

“There are some bright spots in Labour’s manifesto, notably clear and specific commitments to reform Britain’s broken business rates system, which successive governments have failed to implement. The party is right to propose an immediate guarantee for EU nationals currently in the UK, which is a top priority for the many thousands of firms that employ them, as well as more flexibility for businesses to use the apprenticeship levy to train people here at home. Labour’s proposals to strengthen and ring-fence practical international trade support for SMEs deserve careful consideration.

“While Labour are making some specific and targeted propositions that could boost the growth prospects of small- and medium-sized firms, these will be largely eclipsed by their proposals for higher personal and business taxes in the eyes of business leaders around the UK.”

Commenting on the trade statistics for March 2017, released today by the ONS, Suren Thiru, Head of Economics at the British Chambers of Commerce (BCC), said:

“The sharp deterioration in the UK’s net trade position means that trade is likely to have been a drag on UK growth in the first quarter of the year, following a strong performance in the previous quarter. This deterioration reflects a sharp rise in imports in the quarter, and a slight fall in exports.

“While many exporters are benefiting from improving growth outlooks in key trading markets, and the weaker pound is helping to make them more price competitive, our Quarterly Economic Survey shows businesses under pressure from the rising costs of raw materials. The widening in the UK’s trade deficit, and weakening output from the industrial and construction sectors, is further evidence that we are still a long way from achieving a rebalancing of our economy.

“As the UK moves through the Brexit process and beyond, it is vital that more is done to provide greater practical assistance for exporters, including developing an expanded trade mission and fairs programme and funding front-line, face-to-face support for exporters to help get UK businesses trading with the world.”

A new UK Government will herald new opportunities for it to work more closely and effectively with Scotland’s businesses; and Scottish Chambers of Commerce has called for a renewed role for the Scotland Office in generating new partnerships to help grow Scotland’s economy. Liz Cameron, Chief Executive of Scottish Chambers of Commerce, said:

“While an unexpected General Election adds further to the compounded uncertainty generated by recent elections and referendums, it also presents an opportunity for the next UK Government to take a fresh look at its strategy, and in particular how it engages with Scotland’s businesses. The UK Government has a key role to play in supporting Scottish firms to grow and to take advantage of the opportunities that the UK’s changing international relationships will bring.

“That is why the UK Government in Scotland must become as open and accessible as the Scottish Government already is. The Scotland Office must transform its perception and its operation in order to become a functional hub for UK Government services in Scotland, fully aligned and in tune with Scottish business needs. As part of this, the new Department for International Trade must formulate a new partnership with Scottish business that will help to encourage more of our businesses to export and which will harness the international connectivity of the UK Government alongside the deep-rooted business to business links that organisations such as Chambers of Commerce can bring to the table.

“Whatever the composition of the new UK Government following next month’s elections, there will be a clear opportunity for it to deliver closer connections with Scotland’s businesses, to reinvent the nature of its activity in Scotland and to play a key role alongside the Scottish Government in working to build on the huge potential for success across Scottish business; in particular, helping our small and medium sized businesses to succeed in exporting.”