Alister de Ternant, Managing Director, responds to the autumn budget announcement alongside other event industry key players for C&IT.
“This budget is really playing jeopardy and there isn't an ounce of delivered promise.
"We were led into the election with promises of no tax rises on individuals but the reality is that the NI contributions will have two negative impacts: firstly, employers will stagnate pay rises which will affect ‘working people’, and secondly, clients are very focussed on budgets and this announcement will affect revenues meaning spend on marketing, events and travel will be cut.
"The drop in inflation will also give employers an excuse not to raise wages.
“The direct impact in the short term looks like pressure on employers when it's actually on working people.
“In regards to infrastructure investment, the points being put forward are lacklustre.
"There are no strong fixes, the government will be doing the same again in 10 months and I see them calling an emergency budget.
"The macro impact they’re proposing simply isn’t big enough.
“There will also be an impact on companies who use freelancers or contract staff; if there is a reduction in marcomms or event spend, there will be a reduction in people being scheduled to work.
"This will result in them leaving the market, meaning less available talent, which will push the price up of every event.
“Finally, there's a lack of international consideration. It’s very home-related when you bear in mind a third of our GDP is generated from organisations outside of the UK.
"There is no incentive to have a base in the UK.
"Although it operates with best intentions, this is a media and people pleasing budget- when you look under the duvet there is a lot of dirty linen.
"With all of this, it is crucial that businesses keep investing in marketing and events if they want to continue their growth.
"We see time and time again when those budgets are cut, and they are usually the first to go, sales decrease and profits fall.
"Delivering a targeted and effective strategy at the right people will be fruitful in any economy; raising your brand's profile will always yield positive results; and as decision makers deliberate over purchases it is more important than ever that you are front and centre.
"We have seen an uplift in events over the last 12 months - we average 2 per week - and businesses need to capitalise on this.
"The long-term benefits of successful marketing and events are immeasurable and a bold approach now will pay dividends in the years to come."
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