Chancellor is urged to rebalance British economy
THE CHANCELLOR must use his Spring Statement to boost infrastructure spending and rebalance the UK’s economy, says a group representing northern civic and business leaders.
Speaking ahead of today’s fiscal set piece, the Director of the Northern Powerhouse Partnership, Henri Murison, has called on Philip Hammond to prioritise transport improvements and funnel research and development cash to the Northern Powerhouse.
He told The Yorkshire Post: “Working with fellow business organisations for major economic areas, including London First, we have made the case for at least 1.2 per cent of GDP to be spent on infrastructure to ensure we can secure the £120bn needed across the North and in our city regions for transport up to 2050.”
Mr Murison added: “As has been argued for in our Next Steps for the Northern Powerhouse report, we also need to use the 2.4 per cent target to invest in R&D by 2027 as an opportunity to rebalance this spending to the Northern Powerhouse.
“Alongside announcing their commitment through Strength in Places funding, which will benefit all the UK regions, we need to see a further commitment – specifically a road map to achieving the target.
“Northern businesses and universities made these points to Universities Minister Chris Skidmore in Leeds, and also have the support of his predecessor Sam Gyimah MP.
“The prize is significant – the contribution R&D will make to unlocking wider growth across the Northern Powerhouse will be substantial.”
Meanwhile, business groups and think-tanks have demanded sweeping reforms for small firms and benefit claimants.
The Federation of Small Businesses (FSB) has called on Mr Hammond to decisively tackle late payments to firms, while the York-based Joseph Rowntree Foundation has demanded an immediate end to the benefit freeze, which it claims is trapping families in poverty.
The national chairman of the FSB, Mike Cherry, said: “Today’s statement is the moment of truth for the Government and whether it is serious about doing everything it can to tackle the poor payment practice crisis gripping the UK.
“Small businesses are sick and tired of being left out of pocket by some unscrupulous big businesses taking advantage of this imbalance in power to improve their own balance sheets or mask their own financial failings...
“We want to see the Chancellor stand at that dispatch box and announce a positive package of measures that will protect small firms and ensure that everyone is paid fairly and on time. This Government cannot afford to be late on late payments again.”
Helen Barnard, deputy director for policy and partnerships at the Joseph Rowntree Foundation, said: “The benefit freeze is sweeping families deeper into poverty and cannot wait another year for action.
“Ministers have said they want the freeze to end and it would be morally indefensible for the Chancellor to do nothing to address this today. He could and should end the freeze a year early to right this wrong.”
Today’s statement is the moment of truth for the Government. National Chairman of the Federation of Small Businesses, Mike Cherry.