Chamber calls for more economic and political power for city regions

Business leaders have called for greater economic independence for city regions such as Greater Manchester to help them tackle the downturn.

The call comes against a backdrop of poor economic results in the key city areas outside London.

The Chamber of Commerce in Greater Manchester has reported that their members are being hit hard by the downturn.

The Chamber, which represents businesses in the region, is now hoping for an announcement in Wednesday’s Budget on which will be the first city regions to be given new powers to make decisions on economic development.

Angie Robinson, Chief Executive of Greater Manchester Chamber, said: “Whilst some areas were quicker into the recession than others there is no escaping the fact that a large number of businesses across all sectors and areas are facing a daily battle. There are some small glimmers of hope and some businesses that are doing really well but individual success stories won’t make the recovery happen.

“There needs to be a hard element of realism from now on from government that the situation warrants serious and effective actions. The same way of working won’t wash anymore and some of this new way of thinking is beginning to come through.

“The real big win though would be the granting of statutory powers to city regions with real power that focuses on the effective use of all available resources to kick start and drive forward recovery.

“We have been wanting this to happen for years and our businesses want to see this too but only if there are real powers behind it and also that they are part of the decision making process. I hope that the new powers announced on Wednesday will give this work a seal of approval and, for the first time, some real teeth.”

The step of giving more economic power to the City Regions was first announced in November’s pre-Budget Report. But the Chambers are clear that they will only welcome it if there is a genuine element of devolution of power from Whitehall, businesses are involved at the heart of the process and it does not become another way to increase the tax burden.

The need for more specific support on the ground has been confirmed by the findings of the recent Chambers’ Quarterly Economic Survey. The core city results show that while all city regions have been hit hard by the downturn, each one displays a unique combination of positive and negative aspects which would indicate the need for different support measures.

In the North West, there was a mixed picture with more Greater Manchester companies reporting a decline in exports, which seems to be contrary to popular belief and is in contrast with the results seen by Liverpool Chamber where results indicate that exporting manufacturers are doing comparatively better.