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The North East Chamber of Commerce has submitted its response to the government’s comprehensive spending review consultation, calling for targeted investment and policy changes to unlock economic growth across the region.
The Chamber, which represents 2,000 businesses, employing 40% of the North East’s workforce, is urging the government to use the spending review to send a clear signal of support for regional prosperity.
In the submission, Chamber chief executive John McCabe outlines key asks spanning business growth, infrastructure, skills and education, international trade and green innovation.
John McCabe said: “The comprehensive spending review is a critical moment for the government to deliver on its ambition for economic growth and ensure the North East plays a central role in this mission.
“While we recognise the fiscal challenges at play, the opportunity, assets and innovation in our region make it a prime candidate to kickstart economic growth.”
The Chamber’s latest Quarterly Economic Survey highlights the ongoing pressure businesses face, from rising costs to declining UK sales and exports. To support sustainable growth, the Chamber is calling for business rates reform, multi-year funding settlements and a revision of the Treasury’s Green Book to help drive growth in the region.
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The Chamber is also calling for investment to ensure that both the national industrial strategy and region’s two local growth plans can support the development of businesses in the region, as well as funding for programmes and integrated settlements for the region’s combined authorities.
John said: “Our members tell us the business rates system is one of their biggest barriers to local economic growth. We need fundamental reform, particularly for the retail sector, to revitalise high streets and town centres.”
Infrastructure investment is essential to regional growth, and the Chamber is calling for a firm commitment to major transport projects, including the reopening of the Leamside Line, connecting Tyne and Wear and County Durham, investment in the region’s road and rail network, Northern Powerhouse Rail, and the continued development of the North East Green Superport and Teesside Freeport.
“The North East needs certainty on vital infrastructure projects that will unlock new economic opportunities,” John said. “The Leamside Line upgrade alone could generate over £90 million in economic benefits per year.”
A cross-sector infrastructure strategy is also needed to support the building and adaptation of infrastructure for renewable energy, as well as addressing grid connectivity and capacity to drive growth in the North East.
With one in four people in the region economically inactive, the Chamber’s submission welcomes the government’s recent announcements within the Get Britain Working White Paper, especially the region’s new pilot schemes supporting young people and those with health conditions. However, it stresses that continued investment beyond 2026 is essential to make a long-term impact for the North East
The Chamber is also urging the government to sustain Local Skills Improvement Plans (LSIPs) beyond 2025, ensuring funding for the 2026-2029 LSIP period to encourage joined up growth across the region. The government must also address underfunding in further education and simplify the Growth and Skills Levy to allow smaller businesses to access training resources more easily.
With international trade worth £29 billion to the region in 2023, the Chamber is calling for targeted funding and support for SMEs that recognises their unique strengths and needs, to grow capacity and capability in trade.
John said: “Supporting SMEs with tailored trade interventions is essential. We need targeted funding to help smaller businesses develop the skills and infrastructure needed to expand their international footprint.
“The North East is also poised to be a powerhouse of green innovation, so our submission calls for a long-term energy strategy that provides certainty for businesses and attracts investment in clean energy.”
The Chamber will continue to work with local and national policymakers to drive investment, growth and prosperity across the North East.
John added: “Devolution must remain at the heart of the government’s approach. By strengthening local decision-making, we can drive investment and create healthier, happier communities. On behalf of our members, the Chamber looks forward to playing a major role in turning the commitments of the spending review into positive, practical action in for the North East.”
The government’s comprehensive spending review will be published on 11 June.
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