Peterborough business leaders see jobs hope in Chancellor’s £30 billion back-to-work plan

But some have also queried whether the measures will go far enough to revive an economy left reeling by the pandemic.

Addressing MPs, Chancellor Rishi Sunak unveiled a package of measures designed to stem a feared flood of job losses as companies buckle after 15 weeks without cash during the coronavirus lockdown.

Among the measures that Mr Sunak said would ‘protect, support and create’ jobs were a job retention bonus for employers who bring back furloughed staff, a new £2billion Kickstart Scheme to create Government subsidised jobs for unemployed young people, £111 million investment in traineeships and £2,000 payments to firm for every new apprentice.

Other eye-catching measures included a cut in Stamp Duty, and a VAT reduction on food accommodation and attractions plus an ‘eat out to help out’ vouchers to encourage people to use beleaguered restaurants, cafes and pubs.

Outlining the enormity of the challenge, Mr Sunak said the economy had contracted by 25 per cent in just two months.

He said: “We have taken decisive action to protect our economy.

“But people are anxious about losing their jobs, about unemployment rising. We’re not just going to accept this.

“People need to know we will do all we can to give everyone the opportunity of good and secure work.

“People need to know that although hardship lies ahead, no-one will be left without hope.”

John Bridge, chief executive of Peterborough Chamber of Commerce, said: “There are a lot of very positive, small measures which are really good.

“But will it be a big enough stimulus to revive the overall economy?

“It is disappointing that Mr Sunak has not focused on more sectoral approach and considered those businesses that have not been able to re-open. Is it sufficient for those companies to keep people on?
Austen Adams, divisional managing director at Avingtrans, which includes Peter Brotherhood, in Peterborough, and Stainless Metalcraft, in Chatteris, said: “While all help is gratefully received, it is not likely to influence our decision making regarding the size of our workforce.

He said: “Our planning will continue to be based on the state of the wider economy and its recovery - including confidence, growth and demand.”

Mike Cherry, national chairman of the Federation of Small Businesses, said: “We’ve always said that the Chancellor should take a jobs first approach to today’s intervention and that’s exactly what he’s done.

“The Chancellor is absolutely right to stress that the job of getting the economy back on its feet has only just begun.

“Will this set of measures be enough to spur activity over the coming weeks? That’s something that will need to be kept under close review – we may need further action before the autumn.

“The key now is making sure these positive new measures work for all, especially the small firms that make-up 99 per cent of our business community and employ 17 million people.

But Mr Cherry warned: “Whilst the majority of small businesses have been supported by the Chancellor’s emergency measures, some have not.

“We need the Government to spell out how it will help the newly self-employed and company directors who have once again been overlooked this afternoon, and have now been left without help for more than 100 days during this incredibly difficult period.”

Brendan Sharkey, Head of Construction and Real Estate at accountants MHA MacIntyre Hudson, in Minerva Business Park, Lynch Wood, said: “The prospects for the industry would have looked better if the Chancellor had complemented them with a VAT cut.

“The Stamp Duty Land Tax (SDLT) exemption is a really good move on paper, as it encourages first time buyers and those looking to upscale to take the plunge and enter the property market. It also creates an opportunity for downsizing.

“The real question is whether this move stimulates action and purchases rather than just an increase in website traffic.

“The £3 billion investment in green jobs is a great boon for the sector.

“The only concern is whether the work can be spread around. Jobs created through green projects do sometimes favour larger companies.”

Peterborough MP Paul Bristow said “Today’s announcement is brilliant news for Peterborough as it will help get hard working young people into work or protect existing jobs.

“It is another positive step on the road to our city’s bright future.

“Peterborough is well placed to benefit from all the measures that this Government is taking to boost Britain’s economy.”