Ending contract will undermine North economy
TREASURY ministers have been accused of undermining the North East’s economy, after it emerged a £1.4m contract to promote the region’s exports will not be renewed.
The Government contract with the North East England Chamber of Commerce, first awarded in 2015, will end in June – leading Labour MPs to accuse the Tories of endangering exports.
The contract, which saw the NEECC advise on trade matters and promote local businesses and services, will now be taken in-house at the Department for International Trade – which is headquartered in London.
Labour MP Gareth Thomas, raising the issue in the Commons, said: “I’m sure the Chief Secretary will agree that for levelling up to work well, more jobs linked to exports need to be created across the UK. So why with export growth in the UK lagging behind every other rich nation did the Chief Secretary and his colleagues sign off on cuts in funding to the North East Chamber of Commerce to promote exports from that region?”
Treasury Minister Simon Clarke responded: “A flourishing export sector is absolutely vital and that is of course why we’re so pleased to be delivering innovative policies in the North East like a free port on Teesside, which is a great example of how we’re going to bolster export strengths that exist for current and future employers.
“Clearly we want to work closely with all partners including the chambers of commerce, they do an excellent job, but it is absolutely the case that this is not just measured in grants to any individual institution.”
A spokesperson for North East England Chamber of Commerce said: “Our Chamber and several others across the UK have been delivering this work on behalf of Government since 2015.
“We have provided a range of services under the contract including support for exporters, training opportunities and overseas trade missions.
“In the North East, the contract is currently delivered by a team of 35 specialists in our Chamber team.
“In December 2021, Government notified all participating Chambers of Commerce of its intention to take the delivery of the contract in-house.
“Our contract delivery team will therefore transfer to the Department for International Trade at the end of June 2022.
“The transfer of the contract does not represent a cut in funding, it will just see the delivery transfer from Chambers of Commerce to the Department for International Trade.”
The Chamber said they would continue to work closely with the Government to ensure the North East is promoted and supported around the globe.