With news of the UK having entered a recession, the West and North Yorkshire Chamber of Commerce has called for a ‘long-term plan for Britain’s economy’, with all eyes on the upcoming Spring Budget which needs to ‘ditch any gimmicks’ to give ‘businesses … a pathway to develop the confidence to begin investing and growing’.
Whilst the WNY Chamber of Commerce points out that a recession is unsurprising (the economy was expected to grow by negative 0.1% anyway), uncertainty on the future still remains. Echoing these views is the British Chambers of Commerce, whose Director of Policy and Insight, Alex Veitch, points out that cost pressures and uncertainty are to blame for businesses not performing.
What does local business need?
It is no secret that the UK faces regional inequality. Across political parties, there is rare consensus that regional inequalities not only exist, but need to be challenged, a view backed up by extensive data and government reports. Indeed, one reason often given for this inequality is the lack of long-term spending in the North (let’s not forget, the cancellation of the northern branches of HS2 led to much critique from Labour and Conservative elected leaders in the North, with ‘betrayal’ from the government and ‘disappointment’ from MPs.
But whilst promises of government support for the North have been long-promised – they have in some cases led to concrete changes, as is the case in the Teesside freeport, even though the freeport has been embroiled in controversy surrounding alleged corruption and matey-ism – the Yorkshire and the Humber region has not been so lucky. In 2022/23, government capital spending per person for Yorkshire and the Humber stood at £936, coming second to last, in front of the East Midlands with £868 (compare this with £2,010 for London to gain a better picture).
This recession and lack of funding, however, is only part of the difficulty facing the region post-pandemic. For its 2023 fourth quarter Journal, James Mason, Chief Executive of the WNY Chamber of Commerce drew attention to skills training, for both current and future workers. The development of the Local Skills Improvement Plans hopes to ensure that workers have the skills and qualifications to fill gaps in the sector, and be ready for future industries.
Another Chamber of Commerce, covering Hull and Humber, in its Quarterly Economic Survey, pointed to businesses experiencing ‘pressure on prices’ and ‘employment figures showing little sign of a festive boom’, with many expecting ‘turnover and profit to fall’. Yet more reason, say elected officials and businesspeople, for the government to step in with support for the area.
What’s next for business in Yorkshire and the Humber?
Perhaps the most hotly anticipated event of the year in the region, Chamber UK, in partnership with RWE, are hosting a seminar on the Future Economy of Humber, Yorkshire and Northern Lincolnshire. With speakers including Corrine Barry (Director of Net Zero, East Coast UK, RWE) and the Rt. Hon. Graham Stuart MP (Minister for Energy Security and Net Zero), it will be a great opportunity to discuss the regional challenges and opportunities that exist for local communities.
On government policy, the money spent on HS2 will now be reinvested into transport Yorkshire and the Humber, to the tune of £19.8bn (the £19.8bn sum being invested across the Northern regions of the UK). But even with this welcome investment, difficulties will remain, and all eyes will be on the Labour party. After all, they have decreased their promised investment in the green transition (accusing the Conservative mismanagement of the economy), which could foreshadow an underwhelming investment in the region.
It should also not be forgotten that Yorkshire and the Humber is only one region within the United Kingdom. Health and social care will require support, local councils across the country, Scottish and Welsh devolved governments, public services, infrastructure investment, spending on defence: the task facing the current and next government is not small, nor cheap. ‘Ditch gimmicks, develop confidence’ seems a good starting point to create a business-friendly environment. Time will tell if this strategy is adopted by either the Conservative or Labour.