Columnist

Make it count, Chancellor

The Government’s announcement of a £22 billion investment to support carbon capture projects is a significant win for Teesside and the wider North East.

Carbon capture can play a huge part in our energy transition, and there’s no better place to lead on this than Teesside.

The announcement presents a significant opportunity to build a supply chain across the North East, and we now need to see it backed up by proper funding for our further education colleges so they can deliver the skilled workforce required to make this work.

North East business is at the heart of the UK’s net-zero revolution, and in our autumn Budget asks to Chancellor Rachel Reeves we called for the delivery of a cross-sector infrastructure strategy by 2025 to support this, as well as a British Chambers of Commerce-backed call for the Government to commit to long-term funding for Local Skills Improvement Plans (LSIPs).

We also asked Westminster to address the long-term under-investment in further education to manage the effects of any further educational reform, as well as a flexible and more simplified approach to the Apprenticeship Levy to match investment directly with local demand. 

These measures will support the building and adaptation of infrastructure for electricity, hydrogen, other liquid and gaseous fuels and CO2 networks, as well as addressing grid connectivity and capacity to cope with projected growth in demand.

This would drive the green economy and feed into a clear industrial strategy for the UK.

It’s good to see the Government taking significant steps to make this happen.

The Chamber team attended the Labour Party conference, where we heard from the Chancellor on plans for a new industrial strategy to deliver long-term growth.

The speech highlighted a strategy for manufacturing and services sectors, as well as breaking down barriers to regional growth, giving powers to mayors and meeting our net-zero targets by 2030.

Our Budget asks to the Chancellor indicated the key role devolution continues to play in driving investment and growth, and creating healthier communities in the region.

Echoing our Stronger, Fairer North East strategy, the letter included calls for the Government to support enterprise and growth, people and work, and international trade – a key priority for our members, with exports and imports worth more than £29 billion to the North East in 2023.

We hope to see many more wins for the region as a Labour Government prepares for its first Budget in more than 14 years.

Make it count, Chancellor.

John McCabe is chief executive at the North East Chamber of Commerce

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