North-west business leaders react to 2021 Budget

Following the measures announced to support the economy after the pandemic, business and political leaders from across the North-west have reacted to how Rishi Sunak’s 2021 Budget will affect the region’s economy.

A summary of the 2021 Budget is available here.

Broadly, commitments towards ‘levelling-up’ have been welcomed by leaders in the North-west. Stephen Church, North-west Managing Partner at Big Four accounting firm EY, welcomed announcements of Towns Fund recipients in the region, and the creation of a Freeport in Liverpool. He said:

Everyone was expecting this Budget to be a biggie, and the Chancellor did not disappoint.

“Here in the North West we didn’t do too badly – the most significant announcement being that the Liverpool City Region will be home to one of eight Freeports across the country.

“This is a huge boon for the area, creating a regional hub for trade, innovation and commerce.

“It is important that our smaller towns are supported in the recovery if we are to ensure levelling up does not lead to a two tier North so it was heartening to see that Preston, Workington, Bolton, Cheadle, Carlisle, Leyland, Southport, Staveley and Rochdale will receive £211m from the Towns Fund.

“It won’t solve all their problems but it is a recognition of work to be done across the country’s towns.”

Transport for the North Chief Executive Barry White also remarked on the Budget’s support for the region; he said:

As we look towards longer-term recovery and growth, bringing the Treasury to Darlington and setting up the UK Infrastructure Bank in Leeds are very welcome measures that could unlock funding for the North’s aging infrastructure and, crucially, lead to funding decisions that address the historic imbalances in the UK.

“Channelling funds at pace into essential capital projects such as Northern Powerhouse Rail must now be a priority for these new ventures, helping to kick-start recovery and deliver a low-carbon North.

“We now await more detail and long-term commitment to the North’s preferred rail network in the Integrated Rail Plan.”

Greater Manchester’s Night Time Economy Advisor, Sacha Lord, however felt that coronavirus support extensions did not go far enough. He responded to the Budget on Twitter saying:

Overall, I’m pleased today. Recovery will be slow and steady so the furlough extension is a welcome move and will save thousands of jobs. Business rate and hospitality VAT measures will also be a lifeline too many. Operators will be waking up tomorrow with renewed hope.

“[GM Mayor, Andy Burnham] and I have continually called for support for the 3 million freelancers who have been excluded from any financial aid – many of these work within the night time economy. Today, over 600,000 have been helped. A good start, but clearly much much more to be done.

“We still don’t have a Government-backed COVID indemnity insurance policy for events. It’s critical and hundreds of events, including weddings are relying on this. I know Westminster and the Treasury are considering it, so I will continue to drive this through.”

Regional power grid operator, Electricity North West also commented that the Budget missed on opportunities to meet environmental goals with plans to revitalise the UK economy; CEO Peter Emery commented:

A city the size of Manchester, for example, could transform itself into the equivalent of a sizeable power station if enough businesses installed just one 5kW solar panel on their roofs and sites. The Chancellor’s Superdeductor will help this, but making changes to business rates could do even more, by encouraging more business owners to invest in significant solar arrays without increasing the amount they pay in taxes.”