Chamber calls for action across five key pillars to kickstart economic growth in Budget submission
Date published:
The Chamber has written to Chancellor Rachel Reeves ahead of the Budget on 30 October calling for action across five key pillars to support a stronger, fairer North East.
In the submission, Chamber chief executive John McCabe highlights key asks across enterprise and growth; people and work; education and participation; an international North East; and green innovation.
John McCabe said: “We are committed to a North East which is not just stronger but fairer too. This submission is written with that goal in mind, recognising the fiscal challenges your government has clearly signalled whilst being realistic about the opportunity, assets and levers the North East can make available to you in pursuit of your mission to kickstart economic growth.”
He added: “I am firmly of the opinion the North East has a significant part to play in a decade of national renewal and I hope you will take the opportunity of your Budget to send a clear message to this region’s business community that you are of the same mind.”
The Chamber calls on government to capitalise on improving business confidence, as indicated in the Chamber’s Quarterly Economic Surveys, by keeping business rates policy under review and delivering reform. The letter also calls on government to follow through on the ambition for multi-year financial settlements to provide councils and other public agencies with long-term certainty.
John said: “Stability and certainty in public funding is a feature of economic health for places, people and businesses. It is one of the single biggest levers at your government’s disposal to support the long-term health of the North East and the UK.”
On behalf of more than 2,000 members across the region, the submission asks for a commitment to the delivery of the Leamside Line upgrade, which will generate more than £90m per year in economic benefits for the region, create increased capacity on the East Coast Main Line and form the basis of a Washington metro link.
The letter highlights the Chamber’s work with more than 3,000 businesses and employers on Local Skills Improvement Plans (LSIPs), and joins calls by the British Chambers of Commerce (BCC) to commit to long-term funding for LSIPs beyond the current 2025 cut off point, to ensure they become integral to the fabric of the skills system.
John said: “There is a major opportunity to work with combined authorities and other institutions to embed the strong insight and foundation-setting of LSIPs into the forthcoming local growth plans. An extension of funding for at least one year after March 2025 would enable LSIPs to add significant value to both the local adult education landscape and support the introduction of Skills England effectively.”
Other measures include asking government to address the long-term under-investment in further education, as well as more flexibility around the Apprenticeship Levy and a more simplified Levy transfer scheme to allow smaller employers to benefit across the region and match investment directly to local demand, calls also made by the BCC.
Trade interventions also feature strongly in the Chamber’s call. With exports and imports estimated to be worth £29billion to the North East in 2023, international trade remains a key priority for Chamber members. The Budget letter includes calls for targeted funding and support for SMEs to grow capacity and capability to trade, as well as a reset of the trading relationship with Europe to stimulate business confidence.
John said: “The government’s commitment to a trade white paper is welcome and should be prioritised. Our members would like to see this outline a ‘roadmap’ for free trade agreements to enable smoother trade with the EU and beyond, and shaped through close work with business representative bodies such as the British Chambers of Commerce.”
The letter makes the case for the delivery of a cross-sector infrastructure strategy by 2025 to aid in the UK’s net zero revolution, and highlights the key role devolution continues to play in driving investment and growth, and creating healthier communities.
John McCabe said: “Devolution is at the heart of your government’s agenda. It is at the heart of ours too. Strengthening the ability of places to make decisions, drive investment and shape the conditions for growth is one of the strongest levers available to support prosperity and create healthier, happier communities.
“We look forward to seeing how you will use this Budget and the spring’s comprehensive spending review to deliver this. On behalf of our members across the private, public and voluntary sectors we will continue to be the voice for business and employers, supporting those vital conversations nationally and regionally.”
The Chamber’s Stronger, Fairer North East: A Strategy for Change, includes practical actions leaders and businesses can take in partnership to deliver fair and inclusive growth for the North East and the UK.