Business Secretary Jonathan Reynolds has promised the Government will deliver an 鈥渦nequivocal Budget for growth鈥 later this month.
Speaking at the North East Growth Summit in his home city, Sunderland, Mr Reynolds said the Government would 鈥渢hrow the kitchen sink鈥 at reviving the economies in regions like the North East economy and said major investment news would be announced within days at the Government鈥檚 international investment summit.
My Reynolds鈥 comments to business and political leaders came after he had earlier joined with Deputy Prime Minister Angela Rayner on Tynesidet to launch the Government鈥檚 New Deal for Working People. The initiative to extend workers鈥 rights and tackle insecure employment has worried some business groups, but Mr Reynolds said that ensuring working people benefitted more from the 海角视频 economy was an essential part of the Government鈥檚 plans.
He added that that the Government was determined to fix not just the 海角视频鈥檚 economic underperformance but also the regional inequalities that have affected areas like the North East for decades.
He said: 鈥淭he challenge that we face, this Government is going to throw the kitchen sink at it. We鈥檙e going to take some risks and, as the Prime Minister said at his party conference speech, we鈥檙e going to accept the trade-offs and be clear to the public about them.
鈥淪ometimes people say to me that they get the case for economic growth in regions around the 海角视频, but do people really care about it? I know people express it in a different way but if you ask people: do they think their children will be better off than they were. For many people they don鈥檛 think that鈥檚 going to happen and they鈥檙e not wrong in that when you look at the figures.
鈥淪o the challenges are significant. But I do want to say, without a shadow of doubt, that I am incredibly optimistic for the future and for our ability to come together and solve these problems.
鈥淲e have coming up our investment summit next week. We鈥檝e got some of the most significant investors in the world coming to United Kingdom, we鈥檙e making a pledge to them and I think you will see some incredible and significant investments, including here in the North East.鈥
With the new Labour Government鈥檚 first Budget due on October 30, a respected economic think tank has suggested that Chancellor Rachel Reeves may need to raise up to 拢25bn from tax increases if she wants to keep spending rising with national income. The Institute for Fiscal Studies (IFS) said Ms Reeves would need to turn to tax rises to avoid spending cuts and meet her pledge to borrow only to invest.
Mr Reynolds said: 鈥淚鈥檝e seen the IFS analysis today. Of course they are right to say that the economic inheritance for this Government was unenviable.
鈥淏ut I have absolutely no hesitation in saying that the Budget in 20 days鈥 time will be an unequivocal Budget for growth. I think everyone recognises that what鈥檚 necessary alongside that is taking serious responsibility for the public finances, because if you don鈥檛 have that you don鈥檛 have the chance to do anything else.
鈥淏ut the Chancellor and I and the whole of the Government could not be clearer in what we are going to put forward and what that will mean for every region of the United Kingdom.鈥
Earlier at the summit, North East mayor Kim McGuinness and Sunderland City Council leader Michael Mordey had spoken of the need to ensure that investment into the region improved living standards for people in all areas of the region.
Ms McGuinness said: 鈥淲e can make massive inroads into the North-South divide over the next 10 years. But we can do that as part of a joint mission to close the divides that exist within the North East as well, and get the growth that sustains us for generations to come.鈥
