Business leaders in the North West say the Chancellor must back tech hubs and growth sectors beyond London and the South East if she’s serious about Ƶ economic growth.
Rachel; Reeves today announced her vision to grow the economy, including plans to turn Oxford and Cambridge into “Europe’s Silicon Valley” with more housing and infrastructure development. The Government is also now backing plans for a third runway at Heathrow Airport, saying plans will be brought forward by summer.
The Chancellor said she wanted to speed up the planning system as previous decisions have been too slow and “ridiculous”. And she praised development schemes in Manchester, Doncaster and other areas, including the planned massive redevelopment of the area around Old Trafford stadium.
Manchester business leaders say that while they welcome the Chancellor’s ambitions for the Ƶ, they also want to see more support for an investment in this area’s tech hubs and infrastructure.
Professor Ken McPhail, Head of Alliance Manchester Business School, said: “T Chancellor’s plans to deliver ‘Europe’s Silicon Valley’ is a positive sign that she recognises the calibre of our academia and research sectors, and understands just how well-positioned the Ƶ is to capitalise on the nascent technologies that will shape our future economy.
“That being said, the Ƶ won’t be able to cement its position as a global leader in innovation without utilising all of the tools at its disposal. Whilst it’s important that we back and invest in our world-leading innovators in and around Oxford and Cambridge, this mustn’t come at the expense of the development of other tech and life science clusters around the country.
“T North West alone is home to the Sister innovation district – the University of Manchester’s £1.7bn joint project with Bruntwood SciTech - and the Cheshire Science Corridor, which houses businesses including Astra Zeneca and research facilities like Jodrell Bank. It’s important that there is an alignment in priorities across the regions to allow us to maximise our economic potential.”
Katie Gallagher, MD at Manchester Digital and Chair of the Ƶ Tech Cluster Group, said: “It’s positive to see recognition of Manchester as the fastest-growing tech sector outside of London, alongside commitments to regional infrastructure and investment through initiatives like the National Wealth Fund and Office for Investment pilots. Transport investment is critical, and we welcome the Chancellor’s commitments, including funding for the redevelopment of Old Trafford and wider infrastructure projects.
“However, while the Oxford-Cambridge Growth Corridor is undoubtedly world-class in research and innovation, ensuring its benefits extend across the wider Ƶ must be a priority. We need to see a truly national approach that supports growth in all regions and prevents deepening economic divides.
“With the Chancellor’s commitment to go ‘further and faster,’ we hope this means real urgency in delivering the changes businesses need—including expedited reform of the Apprenticeship Levy under Skills England, which would be a game-changer for tech skills development.
“We look forward to more detail in the Spending Review and call on the government to back regional tech clusters with direct investment that supports innovation, talent, and scale-up growth outside of the South East.”
Chris Fletcher, policy director at Greater Manchester Chamber of Commerce, said: “Tre are many things to welcome in the Chancellor’s speech today with a clear ambition to kickstart growth by tackling the barriers that have played a part in holding back critical parts of the economy.
“Confirmation of the recently announced plans for Old Trafford, reference to the great work being done in Stockport and outlining a pilot programme with the Office of Investment and the National Wealth Fund in GM are to be welcomed. There were other announcements around changes to planning procedures and other areas where the pace of infrastructure development will be speeded up and restrictions removed.”
He added: “T announcement of a review of the Treasury’s ‘Green Book’ – the mechanism they use to assess the ‘value’ of infrastructure schemes and which naturally favours development in high value areas such as the South East, and therefore a major blocker of growth in the North, is long overdue and should help rebalance critical developments across the country.
“T ambitious plans for Oxford and Cambridge and expansion of Heathrow were other critical parts of the speech and we will be looking closely at how these will help local economies here in the north. In fact a lot of the final elements of the speech bore a passing resemblance to what the idea and concept behind the Northern Powerhouse when it was launched in 2014. That never materialised on the ground and hopefully the plans announced today and going forward will make up that wasted decade at pace and at speed.”
This month has seen several more hospitality firms in and around Manchester announce their closure as they continue to battle high prices and worry about upcoming National Insurance rises. Mr Fletcher says the Government needs to address those fears.
He said: “Many business owners listening to this will not be comforted at all by the Chancellor’s confirmation of the NIC rise announced in the Budget and set to hit them from April onwards. We are hearing from businesses stating this will cost tens of thousands of pounds and for them the promise of faster developments will seem pretty meaningless.”
Net Zero North West CEO, Jane Gaston, said: “T Chancellor’s assertion that there is no trade-off between economic growth and net zero, and that net zero is the industrial opportunity of the 21st century where Britain must lead the way, is a significant moment.
“It acts as a further springboard for Britain to be a global leader in industrial decarbonisation, as companies which are implementing net zero strategies continue to see the economic benefits.
“Our response to the government’s Industrial Strategy Consultation strongly advocated for a focus on the clean energy sector as an enabler of reindustrialisation. The North West has a pipeline of investable opportunities in hydrogen, carbon capture, renewables and nuclear that can contribute to sustainable and environmentally responsible growth, economic resilience, job creation and retention,” she said.
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