THE Chancellor is today being urged to introduce measures which will allow the North East economy to compete on a level playing field with the South.
Business leaders have told George Osborne he must use tomorrow’s autumn statement to address growing concerns that the North East is being denied the chance to reach its full potential.
The North East Chamber of commerce has written to the Chancellor to set out what measures must be taken to rebalance the economy away from a reliance upon the South and to play to this region’s exporting strengths.
Included in the Chamber’s submission is a restoration of empty property rate relief. The rate relief was previously hiked up to address, the Chamber says, “a problem which never existed in the North East”.
The previous Government’s decision to reduce the tax relief saw North East land owners bulldoze sites rather than pay rates on empty office blocks and shops.
Also high up on the list is the need to offer firms a better incentive to go green. The Government’s carbon emission taxes has been blamed as one reason for Northumberland’s Alcan bosses deciding to close down the Lynemouth aluminium site costing more than 500 jobs.
Chamber chief executive James Ramsbotham has said the Treasury must “ensure there is at least as much carrot as stick” when introducing policies covering energy intensive industries.
Mr Ramsbotham also addresses concerns that not enough is being done to solve problems with transport infrastructure.
In his letter he said: “The North East has fared particularly badly in the revision of transport, and in particular strategic road schemes in the autumn of 2010.
“Upgrades to important junctions on the A19 have been postponed – some indefinitely – a vital improvement to the A1 between Leeming and Barton in North Yorkshire has been cancelled, leaving this the only region in the country not linked to the national motorway network. Restarting these schemes should be prioritised.”
Speaking to The Journal, Mr Ramsbotham said: “The region’s businesses can stand on their own two feet, our export performance is a demonstration of that, but if we are to fulfil our economic potential we must have the same opportunity as the South East to be globally competitive.
“The region would benefit immeasurably by the creation of a high-speed rail network, the A1 and A19 are in desperate need of upgrade and our airports continue to be hit by heavy taxation. Broadband funding should be accelerated to boost our digital network. Without addressing these issues immediately the North East will always be entering the fight for economic growth with one hand tied behind its back.”
Distancing himself from Labour claims that the region needs dedicated help, Mr Ramsbotham added: “The North East does not require special attention, but we do deserve parity with the rest of the UK when it comes to investment in planes, trains and automobiles, energy, broadband and taxation. If the private sector is to lead the recovery we require the tools to help us do the job.”
The Chancellor will deliver his statement to parliament tomorrow.
