Greater Manchester Chamber of Commerce reacts to Budget

Christian Spence, Head of Research and Policy at Greater Manchester Chamber of Commerce

Christian Spence, Head of Research & Policy at Greater Manchester Chamber of Commerce, looks at today's Budget.

"The fourth fiscal statement in twelve months didn’t leave anybody bored: Osborne has developed a style of grand political statements alongside significant reforms with revisions to growth forecasts not slowing him down. The confirmation of large-scale and speeded-up infrastructure improvements in the north of England and some fairly significant changes to the business rates system are the two biggest highlights of the statement overall.

"Confirmation for HS3 between Manchester and Leeds, further research into a Manchester to Sheffield tunnel and faster and more extensive upgrades of the M60/M62 are positive news: the Chamber has been resolute that the success of the Powerhouse initiative is predicated on faster, more frequent and easier journeys both within and between the cities of the north and that the key link is that between Greater Manchester and Leeds. The focus specifically on this by the National Infrastructure Commission and its backing by George Osborne is a significant move forward. The bigger projects will take time – business understands that – but the focus on speeding up some of the easier tasks is excellent and should be commended.

"The business rates system has long been a complaint of businesses across the country. The exemption of 600,000 of them from the system is a good start, and the proposals to revalue more often, if successfully linked to a lighter-touch administration, should make a big difference to many companies, but the detail of that reform will be crucial. Greater Manchester will now form one of two pilots for 100% localisation three years earlier than planned in 2017; the connection between business rates and local authority revenue is strong and will only increase over this decade. The key to success is balancing the needs of both business and local government, and that won’t be easy.

"Greater Manchester will receive additional devolution powers in the criminal justice system, allowing it locally to better manage ex-offenders, and a wider support of schools in the North is designed to close the attainment gap between northern schools and those of the rest of the UK; a similar system was run in London over the past decade with good outcomes.

"Osborne is clearly not losing his touch for radical reform: the challenge is not the creation of ideas, but their successful implementation and delivery. That is where government must redouble its efforts."