Chamber welcomes Chancellor’s announcement of more power and resources for strategic authorities and better training for young people – but more help for businesses must be central to October Budget
East Midlands Chamber today welcomed Chancellor John Healey’s commitment to rebuilding the economy – but said help for businesses must be central to the October Budget.
On a visit to Chamber strategic partner the Manufacturing Technology Institute, the Chancellor said the Government was determined to grow the economy and maintain the country’s place as a global leader in innovation.
The Chamber said decentralising more power to combined authorities – including a greater share of business rates – was welcome news.
But it makes the need for a new strategic mayoral authority covering Leicester, Leicestershire and Rutland all the more urgent.
The Chamber is leading the newly launched Devolution Leicestershire campaign to bring a fairer share of funding to part of the region that has historically been left behind – and risks falling even further behind unless a devolution agreement is reached soon.
Chamber director of external affairs Richard Blackmore said: “The UK national debt is at a record high, so it was heartening to hear the Chancellor promising to rebuild belief in Britain and in strengthening the UK’s fiscal sustainability.
“It is a huge ask, but getting Government finances back on track is key to recharging the economy.
“One way to support that is by giving greater financial independence to strategic mayoral authorities to back industry at grass roots level.
“Permanently devolving more power and resources from Whitehall to regional mayors – such as Claire Ward at East Midlands Combined County Authority – is important in ensuring local funding gets to the places where it can make a real difference.
“But it also highlights how Leicester, Leicestershire and Rutland (LLR) will fall behind even further until they get their own strategic mayoral authority – someone with the power and local knowledge to make decisions on infrastructure, skills, regeneration, housebuilding, and in delivering local industrial strategies and driving investment.
“The Chamber is leading the call for bringing devolved power to LLR.
“Councils in the city, county and Rutland have put their weight behind it – now the Government must get behind it and help make it happen.
“The Chancellor’s backing of a £150m British Business Bank fund for the most innovative scale-ups in the north is positive – but let’s hope it is not an indication that the Government is forgetting about our own region and the challenges new companies face in the East Midlands.
“Mr Healey is absolutely right that inward investment is making Britain the place to do business.
“But he must remember that, despite the demands on public finances, he has the power to supercharge business growth in the 28 October budget – by providing East Midlands companies with the resources and added security to thrive.
“The Government recently cancelled two major East Midlands road schemes – the A38 junction upgrades in Derbyshire and the A46 Newark Bypass in Nottinghamshire – valued at roughly £900m.
“Cutting vital infrastructure plans is not the way to help with growth. This change must be reconsidered.
“Government must also continue to reopen trade links with Europe, the US and other economic partners to make cross-border business as seamless as possible.
“And ongoing work to re-evaluate business rates must continue so that traders, manufactures and small businesses aren’t forced out of premises because of the high costs.
“The Government must create the conditions that give industry the confidence to start investing and creating jobs. That includes bringing in more energy support packages, reviewing the slow planning process and investing in skills.”
