Chamber response to the government spending review
Date published:
John McCabe, chief executive at the North East Chamber of Commerce, said:
“The Chancellor’s first Spending Review sets out a long-term plan to support economic renewal and long-term stability. While today’s announcement reflects difficult choices, there is much for North East businesses to welcome, particularly the renewed focus on regional growth and investment.
“We are encouraged by the commitment to devolve more power and funding to local areas, the creation of a new long-term Local Growth Fund, confirmation of investment in transport and housing, and new funding for 350 communities with the greatest potential and opportunity. Backed by important changes to the Treasury’s funding rulebook, including the introduction of ‘place-based business cases’ to better assess local benefits, these changes represent a serious and sustained shift in how regional investment decisions are made, something the Chamber has long championed.
“Support for infrastructure, clean energy and training – alongside action to tackle child poverty and improve public services – directly responds to our members’ calls for a Stronger, Fairer North East. These priorities matter because they underpin workforce participation, business resilience, long-term competitiveness and inclusive growth, the foundations of a strong region.
“It is right that the government is investing in the skills system, supporting digital transformation and backing sectors with high growth potential. Reaffirmed funding for regional transport schemes, including confirmation of plans to progress Northern Powerhouse Rail, is also a welcome step towards improving connectivity across our region.
“With economic inactivity still a major challenge in the North East, there is a careful balancing act to ensure reforms to departmental budgets and welfare policy do not undermine local efforts to help people into good work or support thriving communities.
“Today’s settlement sets the tone for the forthcoming Infrastructure, Industrial and Trade strategies, later this month, where the detail will matter. The Chamber will assess these plans alongside departmental spending commitments to make sure government funding matches its ambitions, especially for our members in the North East.
“This review sends a strong signal of intent: delivery will be key. We will continue to make the case for a stronger, fairer North East and work with national and regional members, stakeholders and partners to turn policy into progress.”