Chancellor had little to offer for South West in his budget

There was a lukewarm response to Jeremy Hunt’s budget in the South West with little on offer for the region.

Although greater Bristol is one of eight city regions which has been given the chance to bid for funding to improve its public transport network there were no other major announcements for the region.

The Chancellor announced that eight city regions will be able to bid for funding under the new City Region Sustainable Transport Settlement (CRSTS) including Greater Bristol.

But the region missed out when it came to a series of investment zones announced in the budget in the South West.

The newly formed Great South West Partnership, a Government-backed initiative, said the lack of support showed the area was well down on the government’s priority list.

Interim chair Karl Tucker said: “Although Torbay and Torridge are amongst areas in line for levelling up partnership funding, in the main the much discussed levelling up’ agenda would appear to have been again restricted to investments in the North of England and the Midlands despite best efforts to expand this into other areas of the country much in need of levelling up.”

It has also emerged that there are plans in place to disband the Local Enterprise Partnerships set up by David Cameron’s Conservative government.

Underlining local government’s role at the heart of economic growth, the Chancellor said  he would take powers from the LEPs and hand them to councils.

Budget documents said: “The Government is minded to withdraw central government support for LEPs from April 2024.

“DLUHC and the Department for Business and Trade will now consult on these proposals, before confirming a decision.”

Instead, Mr Hunt announced a raft of new ‘Levelling Up Partnerships’, with £400m in investment to go to 20 areas across England. A further £200m is on offer for regeneration, £200m extra for potholes and road improvements and a further £100m for charities and community groups.

Dorset Chamber chief executive Ian Girling

Dorset Chamber chief executive Ian Girling said: “The confirmation of the winding down of LEPs with their responsibilities transferring to local authorities from May 24 at last gives some clarity.

“It is an opportunity for the business community and chambers of commerce to work collaboratively with local councils on initiatives and to make sure Dorset receives its fair share of funding.

“It is a blow that Dorset and the surrounding regions have missed out on the new Enterprise Zones so it will also be important that we as a county lobby hard to win as much as possible of the newly announced £200m funding for local regeneration projects.

“There was little in announcement that will provide comfort to firms most hard-pressed by large energy bills or the continued burden of business rates.

“Overall, it is important to remain upbeat and this Budget does offer some light at the end of the tunnel.”

Simon Peacock

Simon Peacock, head of South West at property consultancy JLL, said: “The chancellor was always unlikely to pull any rabbits out of the hat with this statement given the need for stability and to reassure markets.

“Still, those operating in Bristol’s property sector – where demand is outstripping supply – will be hoping for more urgency when it comes to investing in communities across the South West in the coming months.

“Reports that around £2.5bn remains unspent from the levelling up fund will prove frustrating to those hoping for support for underserved communities.

“Those we speak to in the region suggest the Government could generate growth if they invested in our local authorities to increase the number and seniority of our city planners.

“Regeneration schemes which can deliver jobs, homes and improved neighbourhoods are being delayed and leading to investors looking elsewhere – until that’s sorted growth will remain hard to come by.”

Tracey Watts

Tracey Watts, Tax Partner at Albert Goodman, said: “From a South West point of view, it was disappointing to see that no local region – or indeed any region south of Birmingham – was labelled as having the potential to be one of the 12 named investment zones.

“So often the South West seems to be the region overlooked by both of the major political parties.  Having nuclear power classed as being environmentally sustainable and thus eligible for the same support as other renewable sources will no doubt be a boon for Hinkley and the surrounding economy.

“Carbon capture storage support could be a benefit for the rural sector who already provide a great deal of environmental stewardship.”

Sam Holliday, the Federation of Small Businesses development manager for Gloucestershire and the West of England said little has been done to support SMEs. 

He added: “I think many small business owners will feel they have been overlooked again by this Budget. We had hoped, for example, to hear that there would be new support announced for when the current business energy help scheme comes to an end this month and we were also hoping to see business rates reduced for many more SMEs. Neither of these were even mentioned sadly.

“There were some pluses however on issues such as childcare, fuel duty and R&D tax incentives but perhaps best of all was the news that inflation could be less than three per cent by the end of the year and we may no longer be facing a recession. This will be reassuring for businesses trying to plan ahead  at a time when small business confidence in this region is at an all-time low.”

Dan Norris

Metro Mayor Dan Norris said: “I welcome the £18million for education and skills projects across our region including new and improved facilities at Bath College (Radstock campus), Bristol College and SGS. I’m proud to have secured this funding to help our young people to thrive. It will also mean a new site for 14 manufacturing firms at Hengrove Park plus investment in hydrogen at the University of Bath as we continue in our quest to make the West of England a national and global leader in this clean fuel.

“I also cautiously welcome the objective of multi-year funding settlements for all Mayoral Combined Authorities – and await further details.

“The Tories do not have the long-term plan to address the challenges of today. After all this time – all these Budgets and plans, Chancellors and prime ministers – wages have still stagnated, taxes have risen and our public services are creaking. The West of England has so much potential – we have the drive to do whatever we put our minds to. But we have a government that is an anchor to progress – one that is out of ideas and out of time.”

David Hobbs, head of Bevan Brittan in Bristol, said: “It’s positive news that the government is looking to invest £20bn over the next two decades on low-carbon energy projects, especially with a focus on carbon capture and storage.

“This is another step in the right direction as growing evidence indicates that removing carbon dioxide from the atmosphere will be instrumental to reaching net zero emissions. However, It was a shame that areas in the South West have not made the final cut for the 12 new investment zones despite being on the long list.”