Member Article

Government urged to boost spending for business

A range of measures to kickstart business start up rates in the North East is the cornerstone of a regional ‘wish list’ submitted to the Government. Regional Development Agency One NorthEast and the North East Assembly have sent a detailed 20 page document to HM Treasury for input to the Comprehensive Spending Review (CSR) 2007.

Enterprise, innovation, employment and skills, and investment are the four propositions at the heart of ‘Creating the conditions for growth’, the region’s response on how the spending review can help accelerate North East economic growth. The jointly prepared advice document, compiled with key partners and stakeholders in the region, also seeks further devolution and decentralisation of powers and responsibility.

The proposals feature specific requests on improving business start up rates. This includes developing ‘SME friendly’ procurement policies by removing unnecessary national procurement rules and red tape, making small scale local supply a possibility. Other proposals include using more LSC spending for the demand-led ‘Train To Gain’ model, and the encouragement of public sector organisations to support their own employees in establishing SMEs.

Science and technology also features high on the wish list with a recommendation that One NorthEast works with DTI and the Department for Education & Skills to develop a specific initiative, with graduates on part time contracts to support teaching of science, maths and technical subjects in schools.

One NorthEast chairman Margaret Fay said: “One of our aims is to establish over 7,000 new businesses by 2010, taking a major step towards one of the main productivity targets in the Regional Economic Strategy. “We have a few radical ideas, but that’s what we need if we’re to move ourselves up the economic performance ladder.”

Other proposals include using the region as a pilot for further streamlining of business support services, regionalising National Science and Innovation Funding, reviewing resource allocation between regional LSCs and establishing Regional Transport Boards.

View the report ‘Creating the conditions for growth’

This was posted in Bdaily's Members' News section by Ruth Mitchell .