IT was unfortunate that the petrol poured on the roaring public sector fire by the Chancellor in his Budget Statement drowned out the regional business voice offering to help him out.
George Osborne delivered a tough Autumn Statement under difficult circumstances, but there was little, if anything, we can cling to as new investment for the North East.
While it was not entirely disappointing – extending the Regional Growth Fund by £1bn could be seen as the most positive announcement for the region given the level of funding North East businesses have secured – I can’t help thinking that an opportunity has been missed for the North East to play more of a part in the UK recovery.
The Budget Statement failed to change the pattern of UK infrastructure investment and does not address the more important challenge of helping our businesses do more for UK plc and help the Chancellor not only rebalance the economy but build on our strengths in exporting and manufacturing.
Only two of 40 priority infrastructure projects announced are planned for our region, and neither is new.
While the Metro upgrade and investment in the Tees Valley Biofuels Port are incredibly important, there are other projects that would achieve significantly more in terms of regional growth and connectivity.
A high-speed rail network through the region or much needed upgrades to the A1 and A19 would bring immeasurable economic benefits. And we continue to highlight the fact our airports continue to be hit by heavy taxation.
Rio Tinto Alcan is a tragedy and we have warned action is required to ensure it is not the first of many energy-intensive businesses to suffer this fate.
The North East uses more energy per head than any other it is reassuring that the Chancellor is addressing current energy and climate change-related policies that could have a profoundly damaging impact upon the North East economy – better late than never.
However, it is not yet clear if the £250m being provided is big enough to tackle this.
John Mowbray is president of the North East Chamber of Commerce
Only two of 40 priority infrastructure projects announced are planned for our region, and neither is new
