A North East business leader has told the Government to use the devolution process to give the region the powers it needs to turn around its economy.
North East England Chamber of Commerce chief executive John McCabe met with Chancellor Jeremy Hunt today as part of a meeting arranged by the British Chambers of Commerce, focused on local economic growth. The meeting comes amid conflicting signals on the strength of the North East economy, with figures last month showing the region having the lowest unemployment rate on record, but separate statistics also showing high levels of low pay, child poverty and people using food banks in the region.
At the meeting, Mr McCabe said that businesses were optimistic about prospects for economic growth, but that there were still major challenges for companies as they battled stubbornly-high inflation, labour shortages and supply chain problems. And he called for the North East devolution deal currently being agreed between local leaders and the Government to pass powers on skills, housing and transport that would support economic growth to local people.
Read more : mixed picture on North East economy
Mr McCabe said: “I took this opportunity to speak very directly to the Chancellor about the resilience and ingenuity of North East businesses. We’re still leaning into strong economic headwinds but there is real optimism for a surge in private sector investment in our region.
“In order to deliver this, we’re going to need to pull on all of the levers of devolution to ensure we kickstart our economy, build a future skills pipeline, provide good quality housing for people working and studying here, connect the North East through a modern and affordable transport system and support the public services on which all businesses and individuals depend.”
Shevaun Haviland, director general of the British Chambers of Commerce, said: “It was encouraging to see the Chancellor listening so intently to discussions around unlocking the potential for greater investment in our local areas as well as the importance of getting UK businesses back to growth. The Chancellor heard the Chamber network’s calls on three main issues; utilising planning for growth, sorting out the national grid queuing system and tackling the UK’s tight labour market. More must be done to unlock the planning system at pace, to help firms seeking to invest and to build new facilities.”
The £4bn North East devolution deal - which expands the current arrangements in the North of Tyne to also include Gateshead, South Tyneside, County Durham and Sunderland - has been backed in a public consultation, as well as by the seven local councils involved. The deal is likely to come into force next year, giving an elected North East mayor power over issues such as transport, education and skills, housing and job creation.
But the powers that the mayor will have were put in question at the end of last week when Government Minister Richard Holden - who is also North West Durham MP - played down the prospect of local bus services being brought under the control of local politicians.
