Cautious welcome for Reeves growth plans from regional business leaders

Regional leaders have offered cautious and qualified welcome messages after Chancellor Rachel Reeves pledged to boost economic growth and remove planning and investment barriers.

In addition to the well-trailed announcements on London airports Reeves also said the government will work with local authorities to reopen the Doncaster Sheffield Airport, aiming to turn it into a thriving regional hub.

There will also be a new partnership between Prologis and Manchester Airport Group to build a new advanced manufacturing and logistics park, resulting in £1bn of investment and 2,000 jobs.

She also said the government will back a Wrexham and Flintshire Investment Zone in which would attract £1bn to a project backed by local employers Airbus and JCB, which would create up to 6,000 jobs.

Chris Fletcher

Responding to the Chancellor’s speech, Chris Fletcher, Policy Director at Greater Manchester Chamber of Commerce, said: “There are many things to welcome in the Chancellor’s speech today with a clear ambition to kick-start growth by tackling the barriers that have played a part in holding back critical parts of the economy.

“Confirmation of the recently announced plans for Old Trafford, reference to the great work being done in Stockport and outlining a pilot programme with the Office of Investment and the National Wealth Fund in GM are to be welcomed.

“There were other announcements around changes to planning procedures and other areas where the pace of infrastructure development will be speeded up and restrictions removed.

“However for many business owners listening to this they will not be comforted at all by the Chancellor’s confirmation of the NIC rise announced in the Budget and set to hit them from April onwards. We are hearing from businesses stating this will cost tens of thousands of pounds and for them the promise of faster developments will seem pretty meaningless.”

He added: “The announcement of a review of the Treasury’s ‘Green Book’ – the mechanism they use to assess the ‘value’ of infrastructure schemes and which naturally favours development in high value areas such as the South East, and therefore a major blocker of growth in the North, is long overdue and should help rebalance critical developments across the country.

“The ambitious plans for Oxford and Cambridge and expansion of Heathrow were other critical parts of the speech and we will be looking closely at how these will help local economies here in the north.

“In fact a lot of the final elements of the speech bore a passing resemblance to what the idea and concept behind the Northern Powerhouse when it was launched in 2014. That never materialised on the ground and, hopefully, the plans announced today and going forward will make up for that wasted decade at pace and at speed.”

Net Zero North West CEO, Jane Gaston: “The Chancellor’s assertion that there is no trade-off between economic growth and net zero, and that net zero is the industrial opportunity of the 21st century where Britain must lead the way, is a significant moment.

“It acts as a further springboard for Britain to be a global leader in industrial decarbonisation, as companies which are implementing net zero strategies continue to see the economic benefits.

“Our response to the government’s Industrial Strategy Consultation strongly advocated for a focus on the clean energy sector as an enabler of reindustrialisation. The North West has a pipeline of investable opportunities in hydrogen, carbon capture, renewables and nuclear that can contribute to sustainable and environmentally responsible growth, economic resilience, job creation and retention,” she said.

Katie Gallagher

Katie Gallagher, managing director of Manchester Digital and Chair of UK Tech Cluster Group, said of today’s announcement: “It’s positive to see recognition of Manchester as the fastest-growing tech sector outside of London, alongside commitments to regional infrastructure and investment through initiatives like the National Wealth Fund and Office for Investment pilots. Transport investment is critical, and we welcome the Chancellor’s commitments, including funding for the redevelopment of Old Trafford and wider infrastructure projects.

“However, while the Oxford-Cambridge Growth Corridor is undoubtedly world-class in research and innovation, ensuring its benefits extend across the wider UK must be a priority. We need to see a truly national approach that supports growth in all regions and prevents deepening economic divides.

“With the Chancellor’s commitment to go ‘further and faster,’ we hope this means real urgency in delivering the changes businesses need—including expedited reform of the Apprenticeship Levy under Skills England, which would be a game-changer for tech skills development.

“We look forward to more detail in the Spending Review and call on the government to back regional tech clusters with direct investment that supports innovation, talent, and scale-up growth outside of the South East.”

Professor Ken McPhail, Head of Alliance Manchester Business School, said the plans to deliver ‘Europe’s Silicon Valley’ were a positive sign that she recognises the contribution academia and research can make to economic growth, but warned of an over emphasis on Oxford and Cambridge, which he said mustn’t come at the expense of the development of other tech and life science clusters around the country.

“The North West alone is home to the Sister innovation district – the University of Manchester’s £1.7bn joint project with Bruntwood SciTech – and the Cheshire Science Corridor, which houses businesses including Astra Zeneca and research facilities like Jodrell Bank. It’s important that there is an alignment in priorities across the regions to allow us to maximise our economic potential,” he said.