Partner Article

Chancellor urged to increase North East economic powers

The Chancellor has been called on to give increased powers to the regions and provide a foundation to UK economic recovery by the North East Chamber of Commerce (NECC).

Ahead of the Budget Statement on the 5th December, NECC wrote to George Osborne, and urged him to rebalance the country’s economy by empowering the regions.

The Chamber called for a better focus on growth and for the Chancellor to put his faith in the North East economy, which it said was currently outperforming the UK average.

James Ramsbotham, chief executive of NECC, said manufacturing and export strengths are just two reasons Mr Osborne should allow the North East to spearhead the UK’s economic future.

He said reforms to Air Passenger Duty and fuel duties in particular would buttress the region’s strengths, while new incentives would generate better investment and employment prospects.

Furthermore, Mr Ramsbotham suggested changes to the Regional Growth Fund criteria should be made to allow SMEs in particular to capitalise on funding opportunities.

He commented: “The North East is not a problem for the rest of the UK to solve; we are an untapped resource that could be delivering so much more for the UK economy as our growth levels indicate.

“The Government must focus on the North East if it is to rebalance the UK economy: from financial services to manufacturing; from imports to exports; and from the South East to the North.

“The region has moved away from the perceived “begging bowl” approach, but if we are to achieve our true potential then we require at least parity with our neighbours and the support from Central Government to help us help the UK.”

NECC recommended that the Government should prioritise giving tax reductions to employer National Insurance Contributions for young people to stimulate employment opportunities and apprenticeships.

The Chamber also urged to Government to clarify finance initiatives, make bank incentives clearer, and increase support to professional business advisors.

Moreover, Mr Ramsbotham emphasised the need to capitalise on the region’s strengths, and said UK Trade and Investment must give support to strengthen the infrastructure that links the North East to markets overseas.

He concluded: “The last Budget included very little for the North East, but we are still growing and increasing employment levels faster than the UK average.

“I urge the Chancellor to recognise this and in his Autumn Statement provide us with the support we need from central Government to deliver sustainable long-term economic growth and show the rest of the country just what the North East is capable of.”

This was posted in Bdaily's Members' News section by Miranda Dobson .