Member Article

NECC writes to Chancellor for funding and export clarity

The North East England Chamber of Commerce has called on Chancellor Philip Hammond to improve business support for the region’s businesses and give them certainty in next week’s Autumn statement.

The Chamber has urged the Chancellor to significantly increase trade support to mitigate risks and seize opportunities from leaving the European Union.

North East England has a strong trading relationship with countries in the EU, with nearly two-thirds of its exports being sold there.

The Government is urged to ensure these markets will still be freely accessed to ensure there is no harm to the region’s economy.

The Chamber argues access to European markets has been an integral part of the region’s offer to foreign investors and must be at the front of Government plans.

But leaving the EU could also bring opportunities to increase trade with the rest of the world, and the Chamber is calling for additional support for trade missions and trade shows to enable businesses to take advantage.

Ross Smith, Chamber director of policy, said: “The referendum result has created uncertainty for many exporters and we have to see strong leadership and clear direction so businesses know they can make long term investment plans with confidence.

“But Government has rightly increased the profile of international trade since the referendum, and businesses should be supported to seize these new opportunities.”

The Chamber also stresses the need to establish successor arrangements for the current EU funding in the region.

Any funding arrangements must support Strategic Economic Plans in North East England and explore the opportunity to develop more flexible funding arrangements without the restrictions of State Aid rules.

The future of the JEREMIE funds, which support investment in North East businesses, should also be urgently clarified.

The Chamber is also campaigning for a greater role for employers in shaping the implementation of the new Apprenticeship Levy to develop the next generation.

Its letter to the Chancellor emphasised the need for greater flexibility so companies can use their levy funds to support high quality workplace training, beyond just apprenticeships.

On behalf of its members, the Chamber urged the Government to examine the disparity in funding between companies of different sizes which will lead to small and medium-sized businesses having 90% of training costs paid for, and larger firms saying the levy will substantially increase their costs.

A lack of awareness of the levy and wider apprenticeship reforms among employers is also a major concern, and this needs to be improved to ensure that the region can benefit from increased investment in training.

Get involved

To tell us your views ahead of the Autumn Statement, email no more than 250 words to Jamie at jamie.hardesty@bdaily.co.uk by close of play Thursday 17 November.