Chris Sharp, Chief Financial Officer of Intercity, one of the UK’s leading technology managed service providers explore whether Rachel Reeves’ budget delivered the certainty the economy was searching for.
“The OBR budget ‘leak’ personifies the volatility and uncertainty that has been dominating the economy over the past twelve months and in the lead up to the Chancellor’s speech.
As a forward-thinking technology business, we are reliant upon market stability so our customers can invest in strategic and transformational IT projects, which is pivotal to our growth and our long-term business plan.
We’ve seen first-hand the impact of uncertainty. When budgets shrink and uncertainty grows, organisations cut everything except bare minimum operations. That leads to patchwork infrastructure, higher cyber risk, and escalating long-term costs.
The salary sacrifice change will see over 50% of our 300-strong team negatively affected in their pay-packet. We also estimate the additional cost to our business to be equivalent to two to three new jobs and further compounds the impact of the previous increase in National Insurance Contributions.
There were some green shoots in the budget. In particular, we welcome the focus on investment in Artificial Intelligence (AI), which is pivotal in closing the productivity gap and represents a significant opportunity for our business.
We also work with several public sector customers, including NHS trusts. Digital incentives should start to deliver massively needed upgrades to IT systems and digital footprints, and this is a huge part of our growth strategy.
Finally, regional investment to support tech hubs, rail infrastructure and scale ups in Birmingham and the Midlands is key. We’re embedded here…in local business networks, partnerships, community programmes and education.
Regardless of political persuasion, we want to see strong and consistent economic conditions that enable us to continue to grow and do what we do best: delivering world-class customer service, innovative IT solutions and investment in our people.”
To learn more visit: https://www.intercity.technology
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