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What do North East businesses need from the Budget?

Luke WaltonNorth East and Cumbria political correspondent
News imageLuke Walton/BBC Andy Haldane smiling into the camera. He has grey, short hair and is wearing a blue suit, white shirt and pink tie. He is standing on the concourse of the Glasshouse in Gatesheead which is an open atrium with a white staircase and balcony behind him. There is a cafe with wooden chairs to the left.Luke Walton/BBC
Sunderland-born Andy Haldane, former chief economist at the Bank of England, wants to see lower costs for businesses

A leading economist has called on Chancellor John Healey to do more to help local businesses in the upcoming Budget.

Sunderland-born Andy Haldane, former chief economist at the Bank of England, said north-east England firms had faced a "huge squeeze over the last 10 years".

Haldane, now president of the British Chambers of Commerce, called on the government to lower costs for businesses and devolve power and funding to the local level.

A spokesperson for the Treasury said the chancellor was "fully focused" on giving "businesses a bit of breathing space". Healey will set out Labour's tax and spending plans when he delivers his first Budget on 28 October.

Haldane said: "We need to give local leaders here in the North East, the mayor Kim McGuinness, the powers they need to be master of their own destiny.

"This region of the UK has huge latent potential, some fantastic business foundations around clean energy and offshore wind, around AI, around the advanced manufacturing.

"The potential for growth here is as great as in any region in the UK."

News imageLuke Walton/BBC John McCabe smiling into the camera. He has short, grey hair and is wearing a dark suit with a grey, brown and white tie. He is also standing on the Glasshouse concourse, but the Tyne Bridge is visible out of the large windows on the right. There is a man with a large camera standing behind him.Luke Walton/BBC
John McCabe says costs for businesses need to be cut in the Budget

Local business organisations have also called for measures to support employers.

Chief executive of the North East Chamber of Commerce, John McCabe, said: "It's a really tough time for business right now, with rising costs, particularly the costs of taxation, the costs of compliance with legislation.

"So those costs have got to be cut."

Meanwhile, founder of Sunderland-based market research firm MMC Research, Natasha McDonough, called on the chancellor to do more to encourage start up-businesses.

"There's a lot of people out there who are running full-time jobs and they've got what we now call side hustles.

"But actually, these are sensible businesses that could turn into something bigger."

The Treasury spokesperson added: "The chancellor is fully focused on his priorities, to give families and businesses a bit of breathing space, back British jobs, and drive growth in every postcode, underpinned by a commitment to meet the fiscal rules."

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