Chamber reaction to Chancellor’s Spring Statement
Date published:
Rhiannon Bearne, executive director of policy & representation and deputy CEO at the North East Chamber of Commerce, said:
“The Chancellor’s statement comes at an important moment for North East businesses and employers. Just as she tries to balance a tough set of fiscal conditions against more positive projections for growth, our businesses and employers face the same challenge.
“The Chancellor’s focus on the UK as a defence industrial superpower plays to our region’s strengths. Fifteen percent of defence spending in the North East is with SMEs, the largest proportion of any region in the UK. With exciting developments from NETPark in Sedgefield and BAE Systems in Washington, suppliers across the North East are ready and waiting to play a central role.
“It is positive to see support for a new £625 million package to boost construction skills, alongside new apprenticeship and adult education support. This reflects calls made in both our Local Skills Improvement Plans delivered on behalf of the Department for Education and will help the region play a full and active role in delivering the government’s housing and infrastructure ambitions.
“It is also good news that local authority budgets and key departments such as education and communities have been protected from real-terms cuts. Investing in our schools, colleges and local services is the backbone of sustainable economic growth. Therefore, we will be urging the government to make sure the proposed cuts to civil service administration safeguard some of the important work happening in the North East.
“For a region where one in four of our workforce are economically inactive, it remains to be seen how the proposed welfare cuts will affect households. The government’s commitment to additional employment, health and skills support is therefore welcome, and we would urge the government to consider bringing this forward from 2026–27 for regions like the North East, where the biggest difference can be made now.
“As we look ahead to the summer’s comprehensive spending review, we will continue to advocate for a stronger, fairer North East. Our submission sets out clear, targeted recommendations from improving transport and skills provision to building on our strong devolution settlement. The Chamber will continue to keep the region front of mind in government thinking as decisions are made.
“The Chancellor used strong language around stability and growth. We will work with our members to translate those signals into action.”