Barry White, Chief Executive of Transport for the North, said:
“The Government pledged an infrastructure revolution, and it’s really promising to see some progress on that coming to fruition over the next year. Commitments to creating a UK Infrastructure Bank to be headquartered in the North; spending on rail upgrades and major roads; as well as confirmation of an electric vehicle cash injection, all signal progress in helping build back better and greener. That’s alongside an increase in departmental and capital spending.
“The £4bn Levelling Up Fund is encouraging – Transport for the North has already put forward many shovel-ready transport projects that could be fast-tracked to create jobs in the short-term and economic growth in the long-term. However, how those projects are appraised and decided will be crucial. We need to avoid a situation where communities are stuck in a bidding cycle of competition for investment, with decisions still being made by Whitehall rather than locally.
“Today’s National Infrastructure Strategy chimes entirely with our priorities for the North – closing the economic divide; fast-tracking delivery of strategic projects; and slashing carbon emissions as quickly as possible. The projects outlined are a good start, but there’s a lot of detail on rail in the North still to come with the forthcoming Integrated Rail Plan, which we await with interest.”
Angela Cross, partner and head of tax in the North West said:
“When we surveyed business leaders earlier this month, 47% of mid-sized businesses in the North West felt that COVID-19 will further widen the UK’s north / south economic gap. Business owners have identified a need for infrastructure investment across the UK with a focus on shovel-ready, high-impact projects that meet the specific needs of each region.
“Today, the Chancellor made encouraging announcements with the launch of a £4bn Levelling up Fund which will take a place-based approach and directly fund regional projects up to £20m based on assessing local impact. As well as the potential long-term productivity benefits, this could have positive results for the wider North West supply chain if local partners are engaged.
“The prospect of the National Infrastructure Bank being headquartered in the North is also a positive indicator that there’s a shift in the centre of gravity and the Government is investing in rethinking the regions. The question remains as to whether today’s updates will go far enough to convince the 47% of businesses concerned about the widening economic gap.”
Helen Barnard, Director of the independent Joseph Rowntree Foundation said:
“Remarkably for a much-hyped statement on levelling up opportunity across the country, the Chancellor’s word’s ring hollow as weaker local economies will be getting less money than previously in the aftermath of the pandemic.
“The growing numbers of people in or at risk of being pulled into poverty in our country will have taken little solace from the plans laid out by the Chancellor today. The latest economic forecasts are stark and deeply troubling.
“Behind the figures there are real families wondering how they will get through this winter and beyond. The Chancellor has not risen to the challenge facing the nation. In the here and now families need to know how they will pay for food, childcare and keep a roof over their heads.
“The Chancellor has failed to live up to their manifesto commitment to invest significantly in skills around the UK and allow the funds to be administered locally via mayors, devolved administrations and local authorities. The additional funding for employment support is eye catching and necessary because of the anticipated wave of long-term unemployment in the coming months.
“There is mounting concern in the UK about tackling poverty and inequality, and the time to tackle these issues is now, as we recover from a crisis which has already hit the worst off hardest. This was a moment when the Chancellor could have taken action to solve poverty – instead many families will now be preparing for still harder times ahead.”
