North East business leaders call for more powers following Scotland ‘No’ vote

North East business leaders are calling for a greater devolution of power as it is revealed that Scotland has voted ‘No’ to independence from the United Kingdom.

In the days running up to the vote, various political leaders had promised greater powers for the regions from Whitehall.

Now North East leaders have begun calling for greater powers to introduce measures that will open the North East up to Scottish business, such as better infrastructure.

They are also warning of the reprecussions of Scottish independence, fearing that new tax powers and VAT rates will attract tourism and shoppers to Scotland rather than the North East.

Jeremy Middleton, founder of Middleton Enterprises, a £50 million investment company, and a Board Member of the North East LEP said: “The result of the referendum is to be welcomed, because it is good for the UK and good for Scotland.

“However, the debate has raised a lot of questions for the North East, particularly because all Parties have heralded the rapid introduction of new powers on tax and spending for Scotland, which will potentially have very significant repercussions for the region.

“Depending upon what powers are given, we may be looking at changes to Corporation Tax, which could entice businesses North of the Border, or VAT rates which could affect spending in the region by enticing shoppers to Edinburgh or Glasgow, rather than the MetroCentre or Newcastle, for example.

“Likewise, incentives for investment in Scotland could drive investors North.

“Here in the North East, existing organisations, such as the Local Enterprise Partnerships, need to get together to make the case for changes which will rebalance the economy to the North of the country.

“We need to be calling for such things as lower air passenger duty for all regional airports, an HS3 system, which starts in Edinburgh and comes down the East Coast and improved road links with Scotland.

“We should work with Scotland to put together mutually beneficial plans for such infrastructure improvements, and then take them to the UK Government.”

The North East Chairman of the Institute of Directors (IoD) Graham Robb said: “Businesses will breathe a sigh of relief that the Scottish people have opted to remain within the Union, but now is the time for the North East to push for greater economic powers.

“There should be a change to the City Deals programme to allow the LEPs to spend more central government money within our region and the first target for the enhanced City Deal should be the transport budget.

“Transport is the number one priority for members of the IoD and it is clear that better connectivity and infrastructure is vital to the economic success of the region.

“Politicians will be pressing for more powers, but we must avoid expensive new structures and more bureaucracy. The priority should be the redirection of resources from London to the North East, not the establishment of new bodies or talking shops.”