Green energy projects get £1bn cash injection
Not everyone was hit by swingeing cuts, reports Adrian Pearson.
ENERGY experts last night claimed the North East was the region best placed to benefit from one of the few positive announcements in the Chancellor’s Budget.
As city leaders look at further spending cuts and business bosses wonder if the much requested property tax cuts will ever materialise, the region’s booming energy sector enjoyed a budget spending boost.
Mr Darling announced an extra £1bn to help combat climate change by supporting low-carbon industries with £525m for offshore wind projects over the next two years.
There will also be up to four locations across the country selected to pioneer so-called “clean coal” technology. The North East has two strong contenders for carbon capture and storage and just missed out on the Government’s previous selection round.
Mr Darling said he was using his Budget to “remove fiscal barriers so the North Sea can become a hub for energy of the future - gas storage, carbon capture and off-shore wind”.
Blaydon MP Dave Anderson said he believed the North East was better placed than any other region to benefit from the budget announcements.
Mr Anderson, who sits on the House of Commons energy select committee, said: “I think it is ours for the grabbing. We should be thought of by those in charge as the key regional player here, because we have everything we need to really make this our budget.
“We have huge potential with our universities and our manufacturing base to look at issues such as offshore wind energy and carbon capture and storage and be able to say we are leading the way.
“Without a doubt the Budget was about long-term jobs. And maybe I’m being a bit too optimistic here but I can also see the beginning of a long-term future for coal as well.”
As energy groups celebrate businesses will be preparing for a difficult 12 months.
A big issue on the region’s wish list was the need for an end to empty property rates, which force businesses to hand over cash to the Treasury if they have an unused property.
James Ramsbotham, NECC chief executive, said: "The complete absence of any intention to scrap empty property rates is a sizeable foot on the brake of our economy. The scant relief on these rates seems to be more beneficial to public toilets and cash machines than they are to real businesses and we will continue to keep up the pressure on the Chancellor to reverse this decision“.
Last night Tyne Bridge MP David Clelland urged Budget critics to adopt a more realistic approach.
“I don’t think this was a particularly revolutionary budget, people knew the state of things and the Chancellor was obviously cautious.
“But he made some announcements which will have an impact on our region in terms of helping people into employment and training.
“The message we have given is that we will have to borrow our way out of the recession not cut out way out if it, and if you look across the world the only people who seem to disagree with that are British Conservatives.”
For council staff the news was less optimistic, with the North East public sector looking at cuts amounting to millions of pounds in order to meet so-called efficiency savings.
Mick Henry, Gateshead Council Leader and head of the Association of North East Councils, said he recognised the savings will be difficult.
He said: “While the £9bn extra efficiencies are challenging, local government is already taking real action, working with the North East Improvement and Efficiency Partnership and businesses to improve procurement and secure better collaboration and innovation at the local level."
Officers at One North East tasked with closing the North South divide and creating thousands of jobs by 2016 said the Budget could be a key moment in the region’s bid to become an energy hub.
Chief executive Alan Clarke said: "I welcome today's Budget which specifically focuses on backing business in key areas.
"This includes new and renewable energy - a sector in which the North East has become a hub for development. The announcement of £525m for the offshore wind sector endorses our commitment to green energy.”
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