'We do not have confidence in the Chancellor'

The boss of a Worcestershire metal firm says he has no confidence that Chancellor Rachel Reeves' spring statement will prompt a UK economic upswing.

James Leng, who runs Pre-Met in Redditch that has a £6m annual turnover, has called on Reeves to focus on small and medium-sized businesses, as a way of boosting growth.

"From my confidence level, the economy is on the floor - we are not being seen, heard or supported," he said.

Reeves has insisted the government has "the right plan" for the country that will restore economic stability "in an uncertain world".

Pre-Met opened in 1973 and sells specialised metals to scores of countries, for use in industries like transport and electronics.

Leng said increases to the minimum wage and rising employers' National Insurance contributions are continuing to make it tougher for businesses to hire people.

"[The government] are placing huge pressures on employment costs - the wage gap between skilled employers and an 'entry operator' has shrunk considerably, and that's on top of the National Insurance changes.

"It's very hard to now convince skilled welders or skilled CNC machinists to want to work for a wage that is not much more than having no responsibility, other than having some limited training.

"It's put real pressure right across our industry, and it's something that is not talked about enough."

He said the Pre-Met workforce stood at more than 100 people in 2020, but a combination of the sluggish economy and government policy has made business more challenging.

"When someone leaves, it's a very tough decision as to whether we decide to re-hire the role," he said.

"I'm afraid I don't have confidence in [the chancellor]. This single blanket approach to handling businesses like ours, which are the backbone to the UK economy, doesn't work.

"It's poor economic policy - the pantomime of the spring statement might make good TV, but it isn't solving the real issues on the ground."

However, Reeves said the government had "the right economic plan for our country" in a low-key spring statement, in which she said households would be £1,000 better off per-year by the next general election.

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