Partner Article

NECC urge George Osborne to empower the North East in upcoming budget statement

James Rambotham, the North East Chamber of Commerce’s Chief Executive, has urged Chancellor George Osborne to empower the region when he delivers the budget statement on December 3.

In a submission to the Government, the NECC outlined key priorities to rebalance the economy, create more jobs and turn the North East into a greater economic force that will deliver more for UK PLC.

NECC has outlined four key areas which, if addressed, would help our businesses continue driving forward the economic recovery.

The Chamber has called for swift devolution of powers in consultation with business. More flexible tax and spend decisions that are equitable and targeted according to local or regional economic conditions: not those in London.

It is also seeking increased investment in infrastructure that will unlock activity throughout the economy by improving access to markets and unlocking the spatial capacity necessary for growth.

Key to economic progress is a step-change in the way people are equipped to enter the workforce. More up-skilled and “work ready” people are required to fill potential skills gap in our economy.

Barriers to growth must also be removed. These exist in too many areas and hinder growth and job creation.

Regionally specific pro-growth policies will create an economic core in the region, for which businesses will play a crucial role.

James Ramsbotham, said: “The North East is coming back stronger than ever and it is our businesses that are driving forward our growth. We say it every year, but more must be done to help them deliver more.

“Our submission calls for a suite of measures to build on North East strengths, stimulate further employment and attract investment.

“The region’s continued excellent performance in opening up overseas markets contributes enormously to UK Plc, but by playing to strengths in this field and manufacturing and utilising regional capacity for further business development, the North East could be contributing so much more.

“According to our own Quarterly Economic Surveys, businesses in the North East are recruiting more people, seeing rises in sales and orders and investing more in their staff and companies than at any time since the recession began.

“They are performing admirably and driving the regional recovery forward. It is now up to the Government to match this effort.

“Although employment levels in the North East are high by historic standards, unemployment remains a concern given it is significantly higher than the UK average and the highest of all regions.

“Youth unemployment is still a significant concern. About a quarter of 16 to 24-year-olds are unemployed in the North East.

“Businesses in the North East consistently cite a skills gap as a barrier to employment. This is notable in STEM industries, but also affects construction, professional services, logistics and tourism.

“It is crucial that the Chancellor understands North East weaknesses as much as its strengths when he is preparing the economic blueprint that will carry us forward to next year’s general election.

“It must acknowledge that due to the North East’s leadership in export, expertise in vital industry sectors, and capacity for further development, this region is an essential component of future national growth.

“Far from being a problem for the UK to solve, the North East is a huge asset, which must be allowed to flourish. Devolution is rising up the political agenda.”

Looking to promote your product/service to SME businesses in your region? Find out how Bdaily can help →