Chamber urges Government to tackle key issues ahead of spending review
Date published:
North East England Chamber of Commerce has set out a clear set of demands it wants to see in the Chancellor’s Spending Review on Wednesday, 25 November.
The list covers a range of measures needed to support the region’s business community to recover from Covid challenges as well as specific asks on important issues such as employment and building skills.
Jonathan Walker, Chamber director of policy said: “The Spending Review is an important opportunity for the Chancellor to put into action the commitment to levelling up the country. We are being hard hit on a number of fronts due Covid challenges exacerbating existing problems in our region. There need to be new, substantialinvestment announcements, with clear timescales and delivery routes. Warm words are not enough.”
He stressed the important role the region’s exporters will play if the economy is to bounceback.
Approximately 60% of North East exports are sent into the European Single Market, the highest of all English regions, so the region is disproportionately vulnerable to whatever barriers to trade come from Brexit. To help address business concerns and allow them to adapt to the increased administrative burden expected, there will need to be adequate financial support and guidance.
The Chamber’s view is the current £50m Customs Grants Scheme for upskilling staff, upgrading IT equipment and hiring customs intermediaries is a positive start, but this is set to end in January 2021. With customs declarations expected to increase by 200 million next year, this funding will need to be available for businesses in the medium to long term.
As well as exporters the Chamber want to see support for entrepreneurs, with many people looking for new opportunitiesincluding potentially starting their own business.
The Chamber has long campaigned for more detail on the UK Shared Prosperity Fund to help the region level up. The North Eastnow has the highest unemployment rate, the lowest employment rate and the lowest average hours worked of all British regions. It urges the Chancellor to give clarity on this key investment programme.
Jonathan Walker also highlighted the importance of connectivity. He said: “The transport and aviation sectors have been particularly hit by Covid and the guidance on working from home. We need to ensure that the region retains its connections to help us develop opportunities.Digital connectivity is also increasingly important for businesses so investment in quality digital infrastructure will be essential.
“We need to see the Department for Transport promoting projects that meet the Government’s ‘levelling up agenda’, this must be a central plank of the Government’s investment creating jobs, more resilient networks and investment opportunities.”
Over recent years, Further Education has faced some of the largest cuts in the education sector. In the last decade, per-student funding has fallen by 12% in colleges and 23% in sixth forms, whilst funding into adult education has fallen by 45% in real terms. Successive years of disinvestment in the further education sector has been acutely felt within the North East, with 50% of pupils in the region progressing into an apprenticeship or classroom-based learning post-16 at an FE college compared to 39% in the South East and just 26% in London.
Jonathan Walker said: “Our region’s recovery from the economic fallout of Covid-19 will rely on a well-funded and well-resourced Further Education system which can deliver the widescale retraining and reskilling necessary to help adults into employment, as well as ensure all young people have the skills needed to enter into a much more competitive labour market. Therefore, it is vital Government commits to its pledges to level up the skills system and announces a plan for skills which includes locally led reskilling programmes as well as long-term funding increases for Further Education institutions.”