There were all sorts of striking announcements in Rishi Sunak’s Budget yesterday, from the £5 billion grant scheme to help hospitality businesses in England recover from the pandemic to the less welcome news that the Government will raise the rate of corporation tax to 25 per cent.
The Government will be told it spent too much/ too little; that it shouldn’t have gone for corporations, and so forth. But one thing you cannot accuse it of is forgetting its commitment to “level up” the country, which was a big theme in the Budget.
The Conservatives were elected on this promise – to spread “opportunity across the whole United Kingdom” and move away from being South/ London centric – and Sunak’s speech did not disappoint in this regard.
“If we are serious about wanting to level up, that starts with the institutions of economic power”, he said firmly, before announcing that there will be a new economic campus for the Treasury in Darlington. This means that 750 employees will move from the Capital to that area.
In another interesting development, Sunak announced eight freeport locations in England for East Midlands Airport, Felixstowe and Harwich, Humber, Liverpool City Region, Plymouth, Solent, Thames and Teesside.
While it quickly became obvious (on Twitter, at least) that some people don’t know what a freeport is, let alone have a view on whether they’re a good idea, many councils have been working hard to put in bids for these.
All five council areas in Tees Valley worked together in developing one for Teesside, and it has paid off. Its freeport will be the largest in the UK, spanning 4,5000 acres (2,550 football pitches).
The freeport is expected to increase investment to Teesside, Darlington and Hartlepool by over £1.4 billion and create around 18,000 skilled, good quality jobs within five years. The Government will also be hoping it can boost the chances of Ben Houchen, the Tees Valley Mayor, to get re-elected at the end of this year.
Speaking about his vision for Teesside, Sunak said: “Now, when I look to the future of Teesside I see old industrial sites being used to capture and store carbon. Vaccines being manufactured. Offshore wind turbines creating clean energy for the rest of the country. All located within a Freeport with the Treasury just down the road and the UK Infrastructure Bank only an hour away” (the bank will be in Leeds).
In another part of the Budget, Sunak singled out Andy Street, the Mayor of the West Midlands, where the Government is also increasing public investment.
It is putting £225 million into rail stations and the reopening of old railway lines. Government support will also go towards a major housing and commercial development scheme around the upcoming HS2 Solihull Interachange, along with other regeneration efforts.
Responding to these developments, Street said: “The Chancellor has done exactly what we asked for him, and set out clear and wide-ranging support to help West Midlands businesses and the self-employed through the end of the roadmap and into the recovery stage.”
So you can see that, while covering off lots of areas, yesterday’s Budget sent out a strong political message that the Government can hear people outside Westminster (now literally moving departments to other parts of the country).
The Budget may even have an appeal to Generation Rent throughout the UK, as through trying to correct regional disparities, the Government can also help shift demand for housing, which is overly focussed in the South East.
But overall, it was a show that now the Government’s got “Brexit done”, operation “level up” is well and truly under way.