Autumn Budget 2021: The North East's response

The Chancellor of the Exchequer, Rishi Sunak MP, made his budget speech in the House of Commons this afternoon.

The budget contained numerous announcements, ranging from tackling the HGV driver shortage to a £24bn investment in housing and home ownership.

However, some business leaders and authorities in the region, whilst grateful for many of the announcements, still think the government can go further with levelling up the North East.

Lucy Winskell OBE, chair of the North East Local Enterprise Partnership (LEP), said: “The North East LEP welcomes the intent of the Chancellor’s Autumn Budget and Spending Review, which outlines the start of preparations for a new post-Covid economy.

“It is hoped the £560m allocated to adult numeracy skills across the UK will help address some of the needs set out in our recently published local skills report. We also need to improve digital skills and inclusion so that every North East resident can access education and employment. 

“Of specific interest is the £1.6bn over three years which will include funding to support the roll out of new T Levels for 16-19-year-olds. We are already on the front foot with this and working with the first regional T Level providers to support both them and employers. 

Lucy continued: “We welcome the commitment to continue to invest in innovation towards the national R&D targets – we’ve made compelling cases for investment in low carbon energy solutions and health and life sciences, which we look forward to progressing with government.

“The commitment of over £1.6 billion for the British Business Bank to continue to provide debt and equity finance for small and medium sized business, signifies the commitment to extend the Northern Powerhouse Investment Fund and government’s confidence in Northern businesses to scale up and compete in global markets. 

“Landing investment in the North East will enable our businesses to deliver on their growth plans and create more and better jobs.

“The inclusion of local projects in the announcement of successful Levelling Up Fund bids was good to hear. These projects include £20m for the Grainger Market and £19.8m for West Denton Community Leisure Centre along with funding to establish the Housing Innovation and Construction Skills Academy in Sunderland.

“Although we welcome the changes to Air Passenger Duty which will help Newcastle Airport, we are disappointed that government has announced significant transport investment across the rest of the North but not in the North East, something I am working with public sector colleagues to change. 

“Finally, we have played an integral part in the ongoing national review of Local Enterprise Partnerships, and now understand the results will be published alongside the Levelling Up White Paper in the coming weeks.

Jonathan Walker, policy director, North East England Chamber of Commerce said: “The Budget had some welcome announcements for North East businesses but our wait for a long-term levelling up strategy goes on.

“In the near term we were pleased to see Government had listened to our campaigning on the need for support for the hospitality, arts and culture sectors as well as our regional airports which were so badly hit by the pandemic.

“We welcome the confirmation of funding for a number of regeneration and transport projects across the region. Similarly, many of our members will benefit from the measures announced today on business rates although they fall short on the substantial reform that is needed.

Jonathan added: “However, substantial longer-term strategies like the Levelling Up White Paper, the integrated rail plan and details on how the Shared Prosperity Fund will work, have yet to see the light of day. Without these plans it is difficult to judge how much of a long term impact the levelling up agenda will have on our economy.

“We would like to have seen further support for exporters as international trade is so crucial to our economy.”

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