Member Article

NECC present economic growth plan to the government

North East businesses have presented the Government with a four-point plan to empower the region and deliver sustainable economic growth.

Responding to Nick Clegg’s Northern Futures project, the North East Chamber of Commerce has outlined key “principals” that would help the North East become a greater economic force and deliver more for UK PLC.

According to the Deputy Prime minister, Northern Futures is a new approach to policymaking where the power is given to the people who live and work in a region rather than decisions made by politicians and civil servants in Whitehall.

In its response to the document, NECC has outlined four key principals:

Principal one: Regional Policy – Swift devolution of powers in full consultation with the business community. Tax and spend decisions should be more flexible, equitable and targeted according to local or regional economic conditions: not those in London

Principal two: Developing Infrastructure - Investment will unlock activity throughout the economy by improving access to markets and unlocking the spatial capacity we have for increased levels of growth.

Principal three: Supporting Competitiveness - A step-change in the way we equip people entering the workforce, regardless of what stage of their life they are at.

Principal four: Removing Barriers – These exist in too many areas of business and hinder growth and job creation. Regionally specific pro-growth policies will create an economic core in the region, for which businesses will play a crucial role.

NECC Policy and Research Manager, Mark Stephenson, said: “Addressing these issues will enable faster and more sustainable growth in the North East and consequently the UK.

“It is crucial that North East strengths are understood by decision makers in Government. It must acknowledge that due to the North East’s leadership in export, expertise in vital industry sectors, and capacity for further development, this region is an essential component of future national growth.

“Far from being a problem for the UK to solve, the North East is a huge asset, which must be allowed to flourish.

“Devolution is rising up the political agenda. This can either be a political distraction or a means of delivering meaningful economic powers to regions such as the North East.

“Clearly certain policies are better made in local or regional areas and this must happen with the buy-in of the business community and without delays which could engender lost opportunities for wealth and job creation.”

“There are many examples of policies created to address conditions in certain parts of the country that impact disproportionately elsewhere.

“Such policies include: grid transmission charges, which make it cheaper to develop generating capacity in the South of England and empty property rates, which impacts disproportionately upon the North East property market.

“Air Passenger Duty impacts on the viability of air links to regional airports more than those at congested airports.

“The North East is blessed with a distinctive and fantastic culture; ranging from the arts, heritage, sport, creative industries and tourism which helps our areas grow by encouraging people to live, visit, invest and do business here.

“A cultural renaissance is underway with infrastructure such as MIMA, the National Glass Centre, the Sage Gateshead, Baltic and B39 galleries, the Angel of the North and Beamish among many more.

“Added to a growing array of sporting, cultural and music events and a diverse range of visitor attractions the North East has a remarkable cultural balance sheet.”

Image credited to Clive Nicholson used under Creative Commons License.

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