West & North Yorkshire Chamber of Commerce has welcomed measures in today’s budget to improve infrastructure in Yorkshire.

But the business group also expressed concern in further increases in operating costs for employers being pledged.

Chancellor Rachel Reeves, MP for Leeds West and Pudsey, used her first Budget speech since Labour ‘s election win in July to confirm that West Yorkshire Combined Authority will benefit from an integrated settlement on its finances.

She also pledged to deliver the TransPennine Route Upgrade between York and Manchester, via Leeds and Huddersfield, something many in the region hope will be the precursor to Northern Powerhouse Rail. And the Chancellor also pledged to continue the development of West Yorkshire Mass Transit.

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However, higher National Insurance Contributions for employers, coupled with a significant uplift in the minimum wage by 6.7 per cent, the chamber believes represents significant increases in overheads for businesses at a time when costs are already under significant pressure.

Mark Casci, head of policy and representation at West & North Yorkshire Chamber of Commerce, said: “It is of course welcome to see the chancellor commit to improvements in Yorkshire via enhanced devolution and infrastructure improvements.

“However, the increases to NIC contributions for employers and on the minimum wage will mean real headaches for businesses, particularly smaller firms, and mean that any plans to invest or create jobs will now become far more difficult. Tax is now the number one cost pressure cited by businesses here in Yorkshire and that situation will be exacerbated by these decisions.

“In the months ahead, employers of all size will be hoping to see the cost burden they face begin to recede so that they can invest and innovate to drive the national economy forward.”