Will ‘levelling up’ be at the heart of this year’s Budget?

This time next month, we’ll have a clearer idea from Treasury how the ‘levelling up’ agenda takes shape. In anticipation, this week the CBI submitted its Budget submission to the Chancellor focused on creating jobs, growth and investment throughout the UK. We believe bold action on skills, net-zero, innovation and infrastructure can kick-start growth and investment across the UK’s regions.

Just today we’ve received government’s backing to deliver HS2 in full to unlock capacity and transport connections across the North, Midlands and beyond. Government should also allocate funds to a wide range of strategic infrastructure projects including Northern Powerhouse Rail, Midlands Engine Rail, East Coast mainline in addition to reforms to the Green Book when assessing new infrastructure to help close the regional productivity gap.

Ultimately, it’s private sector investment that will lift productivity and enable all parts of the country to share in economic growth. Private sector investment has fallen over the past couple of years. Next month’s Budget offers the opportunity to reverse this decline through pro-enterprise economic policy for regions.

The CBI recommends a set of practical steps for this Budget including:

• Review business rates to reduce the bill on individual businesses. This review should be completed by year end to incentivise investment by firms across the UK
• Establish a network of high-end research hubs throughout the UK to build on local strengths, develop low carbon zones and support innovation clusters
• Announce vital steps on the path to net-zero, using regulation to ensure that all commercial properties become more energy efficient and fast-track the doubling of funding for on-street EV charging points
• Ensure all parts of England are covered by careers hubs, building on the 40 already announced, a move welcomed by businesses. According to DfE projections this would require 140 hubs across England
• Consult on the design of the UK Shared Prosperity Fund and commit to continued funding regardless of the outcome of EU negotiations and at a minimum match the size of those funds in each nation.

Next month’s Budget is further opportunity for government to outline its approach to devolving powers across England. We’ve asked they publish a devolution White Paper setting out plans to devolve powers in England including a framework setting out clear guidelines to support the development of new deals and establish criteria for assessing deal proposals.

In future, we hope there’s an independent advisory board to impartially assess and advise on devolution deals against the published framework as well a convening of metro mayors ahead of fiscal events.

If you’re interested in discussing how this year’s Budget may impact regions or would like to become involved in ongoing work such as shaping mayoral manifestos ahead of the May elections please contact Jim Hubbard, Head of Regional Policy.