Member Article

'One body' strategy welcomed in North East

Business organisations in the region this week welcomed the government’s announcement of measures to streamline decision making in the North East. The Sub-National Review has the stated aim of encouraging economic growth and tackling deprivation, by giving increased powers to local and regional authorities.

Ross Smith, North East Chamber of Commerce (NECC) head of policy, said: “In the past year we have witnessed at first hand the difficulties caused by having many different agencies and departments responsible for various elements of the local economy. At best, this causes confusion. At its worst, it has led to conflicting aims and diminished ambition. Gordon Brown is right to address this issue. The Sub-National Review seeks to unify many of these different elements in to one cohesive body and that will be welcomed by the business community.”

NECC expressed concern last year that two major strategies for the North East – the Regional Economic Strategy and the Regional Spatial Strategy – were devised by two different agencies using two different economic growth targets.

Mr Smith added: “We are particularly pleased that the Government has placed the body responsible for economic growth at the heart of this new streamlining initiative. It indicates a willingness to encourage greater prosperity in the regions. It is incumbent on the new body to now fight for the key priorities that will truly unlock jobs and business growth in the North East.”

Alan Hall, Director of manufacturing organisation EEF Northern, said: “Business will welcome government’s recognition that RDAs need a clearer focus on maximising regional economic performance and competitiveness, rather than simply chasing targets. Having re-focused their objectives and set out how their performance will be measured they must now get on and deliver.”

However, EEF Northern also expressed caution that some details of the proposals still needed to be assessed. The organisation was particularly concerned about how the proposed Supplementary Business Rate will work in practice and how best to ensure the effective scrutiny of regional economic strategies by local government.

More information about the report can be found at the Treasury website, www.treasury.gov.uk.

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