BUSINESS leaders in the North East have called on the Government to do more to support firms in the region kickstart an economic recovery.
The North East Chamber of Commerce has set out its manifesto for 2012 and is calling for faster cuts to red tape, tax breaks for companies to take on apprentices and a re-think of policies which could harm big manufacturers.
Outlining the group’s 16 point plan, Chamber president John Mowbray said ministers needed to stop thinking of the region’s economy as a problem to be fixed and start doing more to allow firms to fulfil their potential.
He said: “If we are to maximise the North East’s excellent export performance and build on key regional strengths in manufacturing then our businesses must be empowered to innovate, sell and invest more, and generate greater wealth in this part of the UK.
“For these reasons, we will in 2012 challenge our members, local enterprise partnerships, local authorities and other public agencies, and the Government to do more to strengthen the North East’s private sector economy.” Among the issues the Chamber will campaign for are greater investment in transport links, including more electric car charging points, changes to aviation taxes and for assets from the soon-to-be defunct regional development agency One NorthEast to be re-used to benefit local businesses.
“The manifesto not only represents NECC’s agenda for 2012, it is a rallying cry for regional business and the public sector to work together and ensure the region is at the forefront of the economic recovery,” said Mr Mowbray. “We are very clear about what it is that North East businesses want in order to create jobs, encourage new investment and generate success, and the challenge for the next year is to maintain and accelerate the growth that businesses have started to deliver.”
Of particular concern, Mr Mowbray said, is Government plans to impose more taxes on energy intensive businesses, such as the North East’s big manufacturing firms.
He added: “Revenue raising measures such as a carbon floor price will put energy intensive industries, including some of our most important manufacturers and exporters, at a competitive disadvantage and must be re-thought.
“The Government has demonstrated a willingness to forgo future tax revenues as a means of incentivising business. However, more radical steps are required to stimulate private sector employment at a time when growth in private sector jobs is being more than offset by cuts in the public sector with youth unemployment cause for major concern. There is a real prospect of a ‘lost generation’ if this is not tackled.”
