Business and political groups in the North East have given a mixed reaction to Jeremy Hunt’s Budget.
Moves to extend free childcare and boost business investment were broadly welcomed, while the selection of the North East as one of the 12 job-creating ‘investment zones’ - one of many Budget measures released in advance of the Chancellor’s speech - was also popular.
But there was criticism from Labour politicians that the Budget did not nothing to tackle the immediate impact of the cost-of-living crisis.
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Rhiannon Bearne, policy and representation director at the North East England Chamber of Commerce, said: “The announcement of two Investment Zones for the region is positive news and will complement existing and expanding devolution arrangements. Opportunities for local leaders and stakeholders to maximise the impact of these plans are welcome. There were also positive announcements in the net zero space with initiatives to support carbon capture technology and modern nuclear energy, both areas in which Teesside has real strength.
“The Chamber’s asks on childcare have begun to be addressed, with interventions to address both supply and demand in relation to the childcare market. Helping more parents to access work will have a major productivity dividend. The Government needs to make sure that childcare providers and schools have the support to cope with this demand.”
Steve Hare, CEO of North East technology giant Sage, said: “We welcome the Chancellor’s focus on growth and efforts to drive up low business investment, as well as his recognition of the North East as a potential investment zone. However, it’s clear that the proposed capital allowances regime and other reforms don’t go far enough to drive the UK towards a digital economy. We need to see bold tax incentives for digital investment that will drive innovation and investment in cutting-edge technologies like AI and data-powered software.”
Newcastle City Council leader Nick Kemp said the Budget offered no help to people suffering now from the cost-of-living crisis.
He said: “Among G7 countries, we’re expected to have among the worst growth rates at a time when other leading nations are showing far stronger recoveries from the Covid-19 pandemic. Unless that changes, we will not see people’s wages grow in line with record levels of inflation, we will not see any easing of the cost of living crisis, and we will not reverse the trend of rapidly increasing levels of poverty that we are are seeing all over the country.
“Instead, the Chancellor today announced our economy is expected to shrink this year. Though after 13 years of Tory failures, I doubt this comes as a surprise to many.”
And Northumbria police and crime commissioner Kim McGuinness, who is bidding to become North East mayor, said: “Today’s budget was another missed opportunity to end the child poverty we see in the UK - instead of the radical change we urgently need we saw minor tweaks to the system that do nothing to tackle the child poverty crisis we see in the North East. Even his big announcement on childcare doesn’t kick in for another year while families are struggling with the cost of living crisis now.
“The Chancellor again refused to invest in key public services such as the police, our councils and our NHS and instead he focused on picking from Whitehall the handful of areas that will get business support. We need real devolution, and we need mayors to be empowered to take the decisions that matter to their local residents.”
But North East Conservative MP Richard Holden said the Chancellor had delivered a “Budget for growth”.
He said: “Childcare is often prohibitively expensive for working households and so becomes a drag on productivity. Having 30 hours a week of free childcare for working households will be worth up to £6,500 a year. With these phased changes going directly to the pockets of working families, I want to see this implemented as soon as possible.
“We are not out of the woods of global economic headwinds yet, and I understand there are still profound challenges facing the nation. However, I look forward to enjoying the overwhelmingly positive impact this budget will have across the nation but particularly on our towns and villages in North West Durham.”
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