'Don't ignore the regions', leaders warn Reeves

Chancellor Rachel Reeves must revise her growth blueprint to avoid “overlooking regional powerhouses” in favour of the South, business leaders have warned.

The UK’s fiscal chief has pledged to add a third runway at Heathrow and create a so-called ‘European Silicon Valley’ between Oxford and Cambridge.

However, commercial sector bosses say while the plans provide welcome ambition, they should not come at the expense of growth across the country’s other shires.

Hailing the potential of Heathrow’s expansion, which has been dogged by environmental-related delays for years, the Chancellor said the move would “unlock further growth, boost investment (and) increase exports”.

She also backed proposals to extend operations at Luton and Gatwick airports, revealed the Government will support efforts to re-open Doncaster Sheffield Airport, and backed the Mayor of Greater Manchester’s plans to add housing and commercial space around Manchester United’s Old Trafford football ground.

But business leaders said the plans must go further.

Zoë Billingham, director of think tank IPPR North, said the Chancellor must avoid “overheating” the South East.

She said: “The only way to grow the economy to the benefit of people across the country is to devolve power and target investment across our regions. 

“Overheating the South East in the pursuit of upticks in growth that are felt by the few won’t work. 

“We urge the Government to ditch the defaults and lean into a regionally roaring economy.  

“It's time for take-off – but not from Heathrow.”

Clare Loveridge, vice president and general manager of Europe, the Middle East and Africa at global cybersecurity firm Arctic Wolf, which made Newcastle a key international hub in 2022, agreed.

She said: “The Chancellor’s ambitions to create ‘Europe’s Silicon Valley’ between Oxford and Cambridge shows the importance of investing beyond the capital. 

“It reaffirms that UK regions are already thriving technology ecosystems in their own right.

“However, it’s vital the Government does not overlook other regional powerhouses if they truly want to unlock UK growth through tech investment. 

“We chose Newcastle over London as our Europe, the Middle East and Africa headquarters due to its growing talent pool, and areas like the North East must not be snuffed out through neglect.

“Investing in these regions will be critical to accelerating economic growth.”

Mark Casci, head of policy and representation at West & North Yorkshire Chamber of Commerce, called on the Chancellor to avoid “a return to broken promises”.

He said: “We urge the Chancellor to go further and focus on committing to the entirety of Northern Powerhouse Rail, a project which would be transformational for our region.

“It is essential the Government enacts all of its announcements in full and at pace.

“Our nation’s business community still bears the scars of the debacle that was the HS2 cancellation, and we must not see a return to broken promises.”

Simon Gleeson, a partner at London-based audit, tax and business advisory firm Blick Rothenberg, added: “The Chancellor needs to take an urgent step back and prioritise projects and investments that will deliver true top-line sustainable growth for the UK. 

“A rethink around employers' national insurance contributions could bring an immediate response versus promoting aspirational goals.”

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