The Budget: George Osborne told to focus on North East jobs

Chancellor George Osborne is today being urged to tackle the unemployment rate in the North East with his Budget

Stefan Rousseau/PA Wire Chancellor George Osborne
Chancellor George Osborne

The Chancellor has been told his Budget today must address the North East’s unemployment record.

Businesses, house builders and unions have said the Government needs to start growing all parts of the UK economy, not just the South, and urged George Osborne to use his Budget to tackle the number of people out of work in the region.

At 10%, the region’s unemployment rate stands as the highest in the UK, remaining around that level even as unemployment falls in large parts of the rest of the country.

The North East Chamber of Commerce has already written to the Treasury calling for a renewed focus on tackling job creation in all parts of the UK.

Policy director Ross Smith said: “We have seen the recovery really accelerate over the past year. We now need to see measures that will sustain this for the longer term and make it better balanced – not a series of pre-election gimmicks.

“North East businesses are making a huge contribution to that recovery, but doing so within an economic system that is still skewed towards the South East. We need to see measures that will capitalise on the region’s export success, energy expertise and capacity for growth.

“That includes taking better account of the regional implications of taxes such as fuel duty and air passenger duty, better balanced delivery of infrastructure, and greater scope to ensure skills training matches the labour market needs in this region.”

The need for a regional focus was repeated by Beth Farhat, regional secretary of the Northern TUC.

She said: “Most people in the North East aren’t experiencing a real recovery and in fact for many here it’s getting worse, with unemployment for women rising 20% in the last year alone.

“We need a Budget focused on creating more North East jobs, with better quality work alongside with fairer pay. Ministers should end their ideologically obsession with cuts and privatisations to public services and focus much more on a thought-out approach to developing the economy, particularly in regions like ours.

“When eight out of 10 private sector jobs are being created in London it’s clear the current plan isn’t working and the economy is still geared towards London and the South East at the expense of everywhere else.

“There is a consensus across the region about what we need to do, so I’d urge the Chancellor to hand us the economic tools, powers and investment needed to enable us to contribute to regional success and balanced national growth.”

Newcastle Council leader Nick Forbes said house building was a key way of kickstarting the North East. He said: “What we need is a tax break to incentivise house building on brownfield development sites – this would help deal with the chronic shortage of housing and make it financially viable for construction companies to take on more apprenticeships.

“The Government has announced their intention on building a New Town at Ebbsfleet, but a tax break like this would help us rebuild areas like Scotswood and Walker Old Towns.”

And the North East-based Home Group has also had its say, calling on the Government to force through better use of public land, making it easier for firms to build.

The affordable housing group called for the creation of special Housing Zones in which, like the business-led enterprise zones, incentives would be offered to kick start the building process.

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