Companies face 'fight for survival' as Chancellor Jeremy Hunt chooses not to extend energy support in Spring Budget

West & North Yorkshire Chamber of Commerce said companies were facing a cliff edge on energy costs from the start of next month and the lack of movement on additional support would prove a bitter blow that will leave many firms, most notably those in hospitality, in a battle for survival.

Amanda Beresford, chair of the West & North Yorkshire Chamber of Commerce, said: ”The lack of movement on energy prices will mean many businesses will face a fight for survival from next month when assistance ends.”

Shevaun Haviland, director general of the British Chambers of Commerce, said: “Almost half of businesses have told us they will struggle to pay their energy bills from April, and they cannot invest when they are fighting to survive.”

“We’ve got a Budget that on energy helps households but not small firms,” Martin McTague, national chairman of the FSB, added.

West & North Yorkshire Chamber of Commerce welcomed moves to help restore the economy to growth.

Measures on childcare, tax, carbon capture and the introduction of new investment zones across the country, including West and South Yorkshire, have the potential to strengthen our labour force, create new jobs and grow the economy, it said.

Similarly, the Chamber welcomed the news that the UK is now forecast to avoid a recession and that inflation will fall to below three per cent by the end of the year.

Ms Beresford said: “The creation of an Investment Zone in West Yorkshire is welcome as it has great potential to create jobs and attract new capital into our region.

“Similarly, investment into carbon capture is a high-growth, future facing industry which is not only of huge benefit to our environment but is also an area in which Yorkshire is ideally situated to excel.”

Chancellor Jeremy Hunt stood by his decision to increase corporation tax from 19p to 25p but offered a break to businesses with one measure he said represents a corporation tax cut of £9bn a year over the next three years.

The new policy of “full expensing” for businesses means that every pound invested in IT equipment, plant and machinery can be deducted "in full and immediately” from taxable profit.

Smaller businesses will also have an increased annual investment allowance of up to £1m, meaning 99 per cent of SME companies will be able to deduct the full value of all their investment from taxable profits.

However, Mr McTague said the Spring Budget would leave many small business owners feeling ‘short-changed’.

There was also no movement on business rates. John Webber, head of business rates at Colliers, said “The Government’s lack of comment on Business Rates Reform in its Budget today is desperately disappointing.”