NECC urges Chancellor to empower North East businesses

The NECC have urged the Government to use the upcoming budget to empower North East business by backing regional exports and manufacturing.

NECC Chief Executive, James Ramsbotham has called on the Chancellor to help the region deliver more for UK Plc.

In a letter to George Osborne ahead of the Budget on March 20, Mr Ramsbotham asked the Chancellor to move the economy away from over-reliance on financial services and the South East of England.

Mr Ramsbotham said: “The Autumn Statement finally provided something for the region to hang our hats on with the significant motorway upgrade and extension of capital allowances.

“We want this Budget to build on that – our employment figures, export performance and the fact business optimism in 2012 was higher than it has been since the recession began is a clear demonstration that the North East is ready for the recovery.

“With many predicting an unprecedented triple-dip recession, the Chancellor must take this opportunity to be bold and back businesses in the North East to deliver more for the UK.

“Investment in the correct areas will provide regional firms with the stimulus to grow and help spearhead the UK economic recovery.”

The NECC Chief Executive stated that a continued focus on growth and backing the North East’s regional strengths would stimulate employment and investment.

He said: “The Government’s desire to rebalance the economy – from financial services to manufacturing, from imports to exports, and from the South East to the North – is the correct approach.

“We welcome the measures announced in the Autumn Statement to support this, but we expect to see the Government build on these in the upcoming Budget.

“Given the strength of the manufacturing sector in the North East and our excellent export performance, the rebalancing act will not only be of benefit to the North East but will require our businesses to play a central role.

“The same firms are delivering jobs and wealth in very tough global trading conditions.

“The region is relying more than ever on these firms, and everyone has a huge stake in their success.

“With the North East’s international trade success, low carbon expertise, and capacity for greater development, the UK will never achieve its full potential without this region playing a major part.

“As I have repeatedly stated, the North East economy is not a problem for the UK to solve; it is a vital asset which must be developed further.”

Mr Ramsbotham’s submission also highlights the potential impact of further public sector cuts on planning and development.

“Recent regional GVA demonstrates a clear imbalance in regional economic performance.

“I believe that the private sector in the region has outperformed this; the problem is that it represents too small a part of the regional economy.

“ The Government must redress this issue, as we believe there is huge potential for the North East to deliver much greater returns for the UK.

“Our own Quarterly Economic Survey showed the largest increase in overall business performance since 2008 in the first half of 2012.

“North East firms’ investment plans are stronger than at any time since recession began in 2008.

“ A significant rise in the number of companies increasing staffing levels throughout 2012, reflecting the downward trend in regional unemployment statistics.“

NECC, which represents more than 4,000 businesses, has called for a reduction in National Insurance contributions for firms that employ young people, apprenticeship funding to be refocused to encourage sustainable investment in training from employers and for the Government to reconsider the impact of new employment regulations, such as flexible parental leave and extending the right to request flexible working.