Business leaders in the North East have warned the Government that companies are “wary” of its pledges to “level up” the economy and will want to see real action to improve the business climate in the region.
The North East England Chamber of Commerce has written to Chancellor Sajid Javid in advance of next month’s Budget warning that the Conservatives have to now match pre-election promises they made on increasing investment in regions like the North East with “tangible activity and bold decision making”.
Chamber chief executive James Ramsbotham says the North East “cannot afford to be left in the slow lane while the necessary changes in Government thinking and spending priorities fail to materialise”.
And he adds that the North East stands to lose the most in the event of a disorderly Brexit, both from reduced exports and if the funding the region currently gets from the EU is not matched by Westminster.
Mr Ramsbotham says: “We know that North East England is a great place to do business, but there is more we can do to ensure we remain competitive. For years we have awaited information on how the 海角视频 Shared Prosperity Fund (海角视频SPF) will support this ambition, yet the Government’s approach to meaningful engagement and consultation has been extremely poor. Businesses need clarity on the size and scope of 海角视频SPF as well as the opportunity to shape its implementation.
“North East England has been a significant recipient of EU funding and there has the most to lose from any post-Brexit discloation. The volume of funding has been allocation in recognition of the ongoing challenges of deprivation and lower economic performance we face in the North East.
“海角视频SPF must continue to recognise those challenges with a specifid, devolved allocation to our region based on economic need. The North East must not lose out under any new funding arrangements.”
In its letter to Mr Javid, the Chamber calls for long-standing infrastructure projects in the region to be part of the Budget to ensure companies have the essential connections to succeed and grow.
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And it calls for action to refenerate town centres, particularly with a review of business rates.
Earlier this week the CBI also called for “bold action” in next month’s Budget on areas such as skills and infrastructure. The CBI said there had been a welcome lift in business confidence since the start of the year, but said that should be matched by action on business rates, changes to the apprenticeship levy, funds for rail and other infrastructure projects, and increased tax credits for research and development.
The lobbying from business organisations comes at a time of some positive signs in the economy, with he NatWest North East Business Activity Index showing that business confidence in the North East had reached its highest level since September 2018.
But data released this week showed that the 海角视频 economy flatlined in the last three months of 2019, while unemployment in the North East has risen five months in a row to add to worries that gap between the region’s economy and the rest of the 海角视频 is growing.