Business leaders welcome Tories' commitment to free market capitalism but demand more action from Hammond

Christian Spence, head of research and policy at Greater Manchester Chamber of Commerce, said that Mr Hammond's commitment was 'necessary' but an 'insufficient step on its own'

Carolyn Fairbairn, director-general of the Confederation of British Industry, said that Hammond's speech 'shows a Government strong on diagnosis, but weak on action'

Business leaders have cautiously welcomed Philip Hammond’s defence of capitalism and free markets, as well as the Government’s pledge to invest £400m to bolster transport links in the North, but have urged the Chancellor to make sure that rhetoric translates into action.

On Monday, before speaking at the Tory party conference in Manchester, Mr Hammond announced that the Government will earmark £300m to establish connections between the HS2 rail route and cities in the North that are not directly on the route.

An extra £100m is due to be spent on roads across the North of England to help reduce traffic congestion.

Christian Spence, head of research and policy at Greater Manchester Chamber of Commerce, said that the commitment was “necessary” but he also described it as an “insufficient step on its own”.

“The benefits from HS2 and HS3 will be delivered only in the long-term, and business needs to see results more quickly,” he said.

“Enhancements within and between our Northern cities should be accelerated to bring a larger labour market and connect more companies to people seeking work. Longer term ambitions are important, but so are short-term wins, and [the] Government should balance its investment strategy between the two,” he added.

Adam Marshall, director general of the British Chambers of Commerce, also said that while Mr Hammond’s defence of capitalism and markets would be welcomed by businesses, “the fight-back for a strong, competitive market economy has only just begun”.

And Carolyn Fairbairn, director-general of the Confederation of British Industry, said that the Government still owes businesses and the public more clarity of Brexit.

“The UK is facing a generation defining-challenge,” she said in response to Mr Hammond’s speech. “A potent cocktail of Brexit uncertainty and dogma-driven politics on both left and right threatens jobs, investment and living standards. Now is not the time for half measures,” she said.

She said that his speech “shows a Government strong on diagnosis, but weak on action”.

“Businesses looking for clear vision and urgent delivery have been left with slim pickings. Renewing the UK’s creaking infrastructure will unlock regional growth and living standards, as will improving access to housing. But they are only parts of the puzzle,” she said.

“The solution must be for responsible business and government to grow our way out of austerity. But this can only happen with clarity, unity and action. Today’s speech was only one step in that direction.”

Stephen Martin, director general of the Institute of Directors, called on the Chancellor to now use the Budget on 22 November to boost investment by individuals and companies, while Simon McVicker, director of policy at The Association of Independent Professionals and the Self Employed demanded greater support for those working for themselves.