Editor Alun Thorne speaks to West Midlands businesses about how trading prospects have changed in light of the Chancellor’s Autumn Statement which followed gloomy figures on the future of the country’s economy.

The jury remains out on whether the measures introduced by the Chancellor will be enough to get the economy moving again after he delivered his make or break Autumn Statement to the House of Commons.

With the shadow of a double dip recession looming, George Osborne outlined a series of measures to boost business while also extending the pay freeze for a further two years in the public sector.

The headline pledges from the Chancellor included a credit easing scheme where £40 billion will be available as part of the National Loan Guarantee Scheme, £20 billion of which will be made available in coming weeks, and will bring down the interest rate payable on loans to small businesses.

Meanwhile, a £1 billion investment into the Business Finance Partnership is designed to specifically help medium-sized businesses, by investing in funds that lend to them. A further £1 billion has also been pledged for the Regional Growth Fund.

The Chancellor also announced further tax incentives for enterprise zones and a reform to the R&D tax credit system as well as a £1 billion youth contract set to subsidise work placements for thousands of young unemployed people.

The Government is also set to introduce an Enterprise Investment Scheme where investors will be given 50 per cent income tax relief on investments of up to £100,000 in new enterprises.

Other initiatives that the Chancellor hopes will boost the economy include a huge focus on new infrastructure projects, a mortgage indemnity scheme that could help up to 100,000 new homeowners secure loans on properties, the scrapping of planned three per cent increase in fuel duty next year and the capping of rail fare rises to six per cent rather than eight per cent.

He also proposed a series of measures to cut back on employment red tape including consultation on “protected conversations”, and an overhaul of employment tribunals. This will include compensated no fault dismissal for businesses with less than 10 employees, as well as an overhaul of redundancy rules.

West Midland business leaders welcomed proposals to support businesses by focusing on existing budgets and prioritising real growth measures.

Michael Ward, president of Birmingham Chamber of Commerce, 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.”

Mr Osborne has accepted that his hopes of stabilising the UK’s economy are somewhat reliant on the eurozone remaining out of recession.

Indeed, he was in Brussels for talks with European counterparts less than 24 hours after finishing his statement.

Lord Kumar Bhattacharyya, founder of Warwick Manufacturing Group, said the Chancellor had been “a victim of circumstances” but criticised him for having no Plan B.

He said: “Britain is an exporting country but with all the problems in Europe many of our markets have virtually dried up.

“The Government should have anticipated this – to have just a single plan is dangerous.

“And while credit easing is good for small companies, and is at least the right direction to go in, if they cannot invest because their markets are under pressure then there is a problem.”

John Rider, West Midlands chairman of the Institute of Directors, said: “I would cautiously welcome many of the recent initiatives including the underwriting of small firm loans, infrastructure projects to create jobs and efforts to deal with youth unemployment.

“My doubts surround delivery and the delays we are already seeing on politicians’ promises.

“The first stage of Regional Growth Fund money is yet to be paid over, compensation to those uninsured who lost out in the riots has not started yet, enterprise zones will not kick in until 2013, and the youth unemployment plan seems short on detail as to who will qualify as well as being on hold until at least April 2012.

“We need more detail quickly but it strikes me that the Government is in grave danger of falling into Blairite ‘spin’ mode. What is required is action now.”

Louise Bennett, chief executive of the Coventry and Warwickshire Chamber of Commerce, felt the content of the Autumn Statement promised much for business.

But she believes the detail of Chancellor George Osborne’s statement will decide how much firms on the ground actually benefit.

Mike Dell, president of Black Country Chamber of Commerce, added: “All in all, the Autumn Statement has not been as bad as originally envisioned; there is no doubt that we will have to work hard to avoid another recession, but if the measures for growth are implemented properly, local businesses should benefit.”

EEF, the manufacturers’ organisation Midlands region director, Richard Halstead, said: “With global growth plummeting and uncertainty mounting, the task of generating more balanced growth based on investment and trade was always going to be difficult.