Businesses in the North East have given a cautious welcome to the Budget but warned that more needs to be done to boost the region’s economy.
The North East England Chamber of Commerce said the Budget had met three of its main demands, with investment in Darlington railway station, reform of Treasury Green Book and a review of business rates.
But business leaders also called for more detail on some of the promises made to the region.
Rachel Anderson, assistant director of policy at the Chamber, said: “Overall this Budget was a positive change from the past austerity Budgets and we particularly welcome its clear business focus. It includes measures that will benefit our members and support their growth.
“It is helpful that the Government has recognised the problems that businesses are experiencing as a result of coronavirus and introduced support with the abolition of business rates for the small leisure, retail and hospitality sectors.”
But Ms Anderson said that “there is still some way to go until we can say the support we need is definitely ‘done’”, and added that businesses would have wanted to see more investment in education and skills, and a specific pledge on the new Tees Crossing.
North East LEP chair Andrew Hodgson said: “We welcome the announcement of £198m allocation to the North East from the Transforming Cities Fund, including £95m for frequency and reliability improvements across our Metro system.
"The announcement that how the A1/A19 north of Newcastle can be improved will be considered, and future funding and devolution to improve transport within our region, are also positive. We look forward to working with Government to clarify the details over coming months.
“Up to £387m has been committed in 2021-22 to provide certainty for local areas that they can continue with projects that are funded by the Local Growth Fund, and decisions on the future of the regional funding will be made at this summer’s Comprehensive Spending Review.
“Over the longer term, we are pleased that government has recognised the importance of investing in the drivers of productivity. These are also set out as priorities in the North East Strategic Economic Plan."
Jonathan Lamb, chief executive of the Entrepreneurs’ Forum, said: "I welcome the decision to reform rather than scrap the entrepreneurs’ relief, which remains an important incentive for those who take the risks in setting up or growing a business.
“Instead the measure – which reduces capital gains tax for those selling their business – will be scaled back from £10m to £1m.
“I also welcome the support for those small and medium enterprises affected by coronavirus, with the Government’s guarantee to fund two weeks’ statutory sick pay for businesses with less than 250 employees.”
Sabby Gill, Ƶ managing director of Newcastle software firm Sage, said: “We do welcome the investment commitment to support the North East’s infrastructure and the £12m for local full fibre networks for the North of Tyne.
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“What’s more, the Government’s commitment to look at the work of the Apprentice Levy is a good move and we hope this will take a wider view of the Levy, which will allow employers to have a more flexible approach to addressing the skills needed right across the Ƶ.”
Kevin Bell, partner at Newcastle law firm Womble Bond Dickinson, said: “As ever, the ‘devil is always in the detail’ and this Budget is no different, particularly when noting that a separate publication, the landmark National Infrastructure Strategy that is due to be published later in the Spring, is the document that will really set out the plans for the ‘once in a generation transformation of the Ƶ’s economic infrastructure’.
“So not much mention of Northern Powerhouse Rail or improvements to local rail infrastructure.
“And although the Government has made a number of commitments to incentivising cleaner forms of transport (such as further investment in electric vehicle charging infrastructure and incentives for the purchase of electric vehicles), the fact that fuel duty remains frozen for a 10th year in a row does nothing to help push motorists out of their cars and onto public transport here in the North East.”
