The North East Chamber of Commerce responds to the Chancellor’s budget

“This first Budget from the new Chancellor takes small steps rather than big leaps towards unlocking the North East economy. We are pleased to see our main ask – no new taxes on businesses – heeded by the Chancellor. The retail offer to households may help offer working people and families with some of the breathing space we know they need. But for now, the government has potentially offered stability at the expense of dynamism and this may be a missed opportunity for our region.  

“On behalf of our members, we have consistently called on the government to reduce the cost of doing business and create an environment which gives businesses the confidence to invest, innovate, export and create good jobs. Interventions on regulations and tariffs, financial support to help young entrepreneurs and female business founders, and support for our region’s strengths in clean energy are welcome, as is the continued business rates relief targeted at our high streets. We look forward to hearing more on skills and economic inactivity in the forthcoming reports later in the year.  

“There were also some notable wins for the North East specifically in this Budget. The government prioritising delivery of mature carbon capture, usage and storage and hydrogen projects at Teesside will boost these important regional projects. Funding for the regeneration of Gateshead Quays, the £85 million investment to transform the Offshore Renewable Energy Catapult’s facilities in Blyth, and the announcement that Gateshead will be hosting the government’s International Investment Summit are all wins.  

"We will be looking at the Fiscal Devolution Roadmap, launched alongside the Budget, to better understand the big announcement on local retention of business rates and income tax receipts. Unlocking this investment must offer a net benefit for both our local authorities and our Mayoral Strategic Authorities to deliver good growth right across the North East – but only if genuine rebalancing is achieved both between and within regions.  

“Overall, there are encouraging elements to build on but we will judge this Budget by its impact on our region's businesses. The test is whether it helps more North East firms grow, trade internationally and create the quality jobs our communities need.”