Pictured: Michael Ward

West Midland business leaders welcome proposals in the Autumn Statement by the Chancellor to do more to support businesses by focusing on existing budgets and prioritising real growth measures, but the Chamber does not predict a recession in 2012.

Michael Ward, president of Birmingham Chamber of Commerce said the organization had expected minimal to low growth for 2012.  He said: "In the circumstances we are pleased with the new measures announced which will support private sector growth through investment in improving infrastructure, access to finance and business support. 

"Against the backdrop of political instability and impotency across the EU and US, the Chancellor's deficit reduction strategy has earned the UK real credibility in the financial markets. This has been hard earned- and we wholeheartedly support the Government's reiteration of its commitment to deficit reduction today. 

"However in the face of falling business confidence, we welcome the Chancellor's commitment today to do more. The extent of the challenge to both balance the books and grow the economy was made clear today by the significantly poorer economic prognosis by the Office for Budget Responsibility.

"We also predict that employment will continue to rise to 2.7 million people nationally and that the Monetary Policy Committee (MPC) will increase the Quantitative Easing (QE) programme to £325 billion, from £275 billion, to tackle the lending squeeze caused by the Eurozone crisis.

• On national loan guarantee scheme 

Michael Ward said: "Our members have told us that their investment intentions are low.  In our latest quarterly economic survey 62 per cent of manufacturers said there had been no change in investment in plant and machinery and in the service sector 74 per cent said there was no change. So confirmation of credit easing measures to aid smaller businesses should have a positive impact on confidence and will encourage SMEs to invest and grow. 

"Today's announcement will also encourage more suppliers to the business market lending place. The reduced cost of borrowing for many SMEs will ensure that they are better able to invest scarce resources in the business. It is critical that the government, business community and banks work together to encourage viable businesses to take advantage of the increase in credit."

• On tax business rate holidays

Michael Ward said: "The news that the existing small business rate relief holiday will be extended for an additional six months will be greeted enthusiastically by SMEs, particularly the independent retail sector in Birmingham."

• On construction

Michael Ward said: "In addition to last week's construction plan, the Government has committed to paying contractors working on public buildings, within five days of the payment's due date. This will be very welcome to a sector that is really feeling the squeeze and should help smooth cash flow."

• On investment

Michael Ward said: "We welcome Government moves to support investment in start-up and SME companies through tax relief.  The Seed Enterprise offer, capital gains tax holidays in 2012 and the new £1billion Business Finance Fund should also assist those businesses too big to access the smaller funds but too small to benefit from the Business Growth fund and other existing initiatives." 

• On fuel duty 

Michael Ward said: "The Chamber is encouraged to hear that the proposed 3p rise in fuel duty, due to be introduced in January, has been deferred.  This would have had a terrible impact on inflation and businesses desperately trying to keep costs as low as possible would not have been unable to remain competitive.  

"We would urge the Government to delay any increase for as long as possible as an increase in tax yields would be offset by a decrease in demand and damage to business and growth."

• On international trade

Michael Ward said: "The Chamber has campaigned to ask for more help for international trade.  We need further assistance but there were no details in the Chancellor's speech.  Businesses need to be encouraged to enter export markets to increase economic growth."

• On infrastructure

Michael Ward said: "The Chamber welcomes the Chancellor's commitment of an extra £5 billion of capital investment for big, strategic infrastructure projects including broadband. Too often after a recession infrastructure investment is seen as an easy budget to cut and this lack of long termism can be seen in the bottlenecks of our roads and railways.  

"Investment in infrastructure in the West Midlands of £110m for the A45/46 toll bar end improvement scheme, £270m for two new managed motorways, one of them using the hard shoulder on the M6; support for Tax Increment Financing and speeding up of planning approvals are vital to keep our economy moving and will create jobs and growth but more importantly it will make Britain more attractive to investors and make it easier to do business.  

"However we would urge the government to ensure that this investment does not draw money away from maintaining our local roads.  While it is vital that we have world class infrastructure we must also ensure that we get the basics right." 

• On pension fund investment

Michael Ward said: "It is pleasing to see innovative funding mechanisms such as 'Made in Birmingham' influencing national thinking on perhaps the biggest issue of the day, how we can fund investment in this age of austerity. 

"The Government's commitment to enable British pension funds to invest in UK infrastructure (as Canadian and Australian funds are in Birmingham Airport) creates new opportunities for UK plc which must be grasped."  

• On employment legislation and better regulation

Michael Ward said: "It is pleasing to see that the Government finally understands that red tape is a real burden on SMEs and a true inhibitor of job creation. Recent announcements around the reduction of employment legislation, particularly around hiring and firing, will reduce the risks in hiring and help the smallest businesses grow."  

• On youth unemployment

Michael Ward said: "The Chamber welcomes the Chancellor's confirmation that the Government will commit £1 billion to a new 'youth contract', creating at least 410,000 work places for 18- to 24-year-olds.  

"Currently 17.7 per cent (17,590) of 18-24 year olds in Birmingham and Solihull are claiming job seekers allowance.  5,225 have been claiming for over six months, which compares to 16 per cent for the UK.  

"It is vital that we support businesses in hiring young people at a time when many businesses are seeking to reduce costs."