Emergency Budget: North has "mixed reaction"

Business leaders in the north are relieved that capital spending will not be reduced, it has been reported.

Writing for the Financial Times, Andrew Bounds said news from Chancellor of the Exchequer George Osborne that projects such as the London-Sheffield train network upgrade will be left alone has rallied the north of the UK.

However, this is balanced with wealth management concerns over public sector cuts and the rise in capital gains tax and VAT, showing a ’mixed reaction’.

Smaller companies in the region are worried about what an increase in tax would mean for them, although Mr Bounds noted larger firms are pleased the fiscal plans would create stable exchange rates, boosting exports.

Speaking to the newspaper, president of the Leeds, York and North Yorkshire Chamber of Commerce Gary Lumby said the measures in the Budget would help the private sector, adding: ’Credit is beginning to flow better.’

On Tuesday (June 22nd), Mr Osborne announced VAT will increase from 17.5 per cent to 20 per cent from January 4th 2011.ADNFCR-2318-ID-19857937-ADNFCR