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AA comment on Government spending review

/ November 25th 2020
Advertising and the UK Economy Coronavirus Response

Following the Chancellor of the Exchequer’s statement on the Government’s Spending Review today (25 November 2020), Stephen Woodford, Chief Executive of the Advertising Association has commented:

“Today’s spending review announcement with its focus on jobs is to be welcomed. Employment and growth must be prioritised after the massive impact of coronavirus on our economy and our impending departure from the Single Market and Customs Union. With interest rates so low, the Government has a historic opportunity to invest in badly needed infrastructure that could be transformational in terms of the levelling up agenda. Whilst we understand the Chancellor has chosen a one-year spending settlement at this stage, we hope for early clarity on the longer 3-year review to avoid adding to the uncertainty already hanging over the wider economy.

“Many industries, including advertising, have been hit hard by the lockdown and the continuing restraints on consumer behaviour, while necessary from a public health perspective, remain a handbrake on the economy. Advertising is an important economic lever to support the recovery, delivering – as it does – a £6 return to GDP for every £1 invested. This is why we have developed a series of industry proposals for Government which can assist our country in our recovery from the pandemic. These include a tax credit for advertising as well as a programme to boost skills in industry, so that our workforce is equipped for the future jobs market with the necessary skillset to handle the structural changes to our economy.”

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