CALL TO RISHI – BACK THE SOUTH WEST TODAY
FINANCIAL STATEMENT PREVIEW
SOUTH West business organisations are calling on the Chancellor of the Exchequer to boost the region in his vital Spending Review – but fear losing out to the north of England.
Rishi Sunak will outline the Government’s spending intentions for 2021-2022 in the House of Commons today and the South West wants a share of the cash to pump into growing industries, such as green energy and lithium mining, medical and advanced manufacturing, and as a boost to the region’s digital connectivity. But there are fears the Westcountry will be overlooked by the Tory administration and that its much vaunted “levelling up” agenda prioritises the North where “red wall” Labour seats tumbled to the Conservatives in 2019.
The South West Business Council (SWBC) and key chambers of commerce are calling on the Chancellor not to forsake the region and give it a financial shot in the arm as its battles to cope with the economic impact of the coronavirus pandemic.
Tim Jones, chairman of SWBC, said there is a fear Westminster may think it has done enough for the South West by approving the £1.7billion A303 Stonehenge tunnel development, which could bring a £4billion regional uplift over 20 years.
Mr Jones said more is still needed and added: “The concerns we have are that history might repeat itself and the South West will be ignored, both for new funding opportunities and as any part of the levelling up agenda.
“The Treasury might also think that they have done enough by confirming the Stonehenge Tunnel allocation.”
He said the SWBC’s informal talks with the Department for Business, Energy and Industrial Strategy (BEIS) had probed for “any glimmers of light that might benefit the region” and said: “There is absolutely no evidence of anything we could rely upon in the near future.
“Obviously this comes at the worst time possible for us because of the huge impact Covid-19 has had on hospitality, leisure and tourism.
“No one has accurately worked out the financial implications of the decline in this sector and its knockon effect to local companies, particularly those in the service industries, food and drink and retail. The South West is already 10% behind in our productivity compared with the rest of England.”
Stuart Elford, chief executive of Devon and Plymouth Chamber of Commerce, called for an economic lifeline from the Government, rather than support solely going North.
“Businesses will be watching with keen interest what Rishi Sunak has to say this week in his spending review,” Mr Elford said.
“This has been a tough time for business and disproportionately so in the South West, which has been more severely impacted by the effects of coronavirus than other parts of the country.
“We want to see the Chancellor use his review to give a much needed boost to the region and not once again see investment going to the borrowed votes in the North.
“For too long the South West has been overlooked and there is a real danger of an East-West divide, despite the Westcountry having so much to offer with world-class medical, technology, environmental and advanced manufacturing businesses based here.”
He added: “It will be interesting to see whether any announcements contain any new money or are recycled schemes already in the system.”
Kim Conchie, chief executive of Cornwall Chamber of Commerce, stressed British Chambers of Commerce South West (BCCSW) remain “very concerned” that the Treasury will again overlook the Great South West.
“The phrase levelling up seems to apply just to Red Wall northern constituencies, whereas the South West has different and equally applicable 21st Century businesses and sectors to develop for the long term health of the UK’s economy,” he said.
“What we would like to see from the Chancellor is some strategically thought-through investment in Floating Offshore Wind, geothermal energy, onshore wind, lithium, digital infrastructure and tech skills which will provide the framework in which businesses can create jobs, prosperity and innovation appropriate to our region.”
We are concerned history might repeat itself and the South West will be ignored TIM JONES, SWBC