Shadow Chancellor visits Rochdale

Shadow Chancellor Ed Balls MP

Shadow Chancellor Ed Balls MP met the Chamber's Director of Policy, Chris Fletcher, and Local Manager, Michelle Geoghegan, when he paid a flying visit to Rochdale last Friday.

The visit was co-ordinated by Rochdale MP Simon Danczuk and part of it was focused on how help can be given to manufacturing businesses in the town.

During the lunchtime roundtable attended by several local firms, the Shadow Chancellor spelled out areas where both he and the Chancellor agreed - around the need for a tough deficit reduction plan, including tax rises and spending cuts; better regulation and the need for a clear growth strategy to help business and create job opportunities. Mr Balls then highlighted where he and Mr Osborne differed, mainly around the speed of cuts and a less than obvious growth plan.

Chris Fletcher said: "Much of what Mr Balls said made sense to the businesses in attendance. It's basic business that if you just simply focus on cutting costs in the short term this will achieve substantial savings, however in the medium to long term it doesn't set any foundation to achieve growth. This is something many businesses tell me on a regular basis, that cuts alone will not bring the level of growth required to kick-start demand for jobs and real lasting economic improvement.

"As regards the banks, Mr Balls acknowledged there must be change but cautioned about going too far and making it even harder for business to access funds in the future. Whilst there is less appetite for risk, the only sure way to manage out any risk is to do nothing and that, according to the Shadow Chancellor, is not an option."

At the start of the meeting, Chris and Michelle presented Mr Balls with the Chamber's latest Quarterly Economic Survey report, which he enthusiastically received.

Michelle added: "Mr Balls immediately asked what the survey said and we replied it was positive in the main but highlighted some long standing concerns from our members. This is another great example of how by taking part in the QES the views of business can be given direct to the right people who make decisions and form policy."