Chancellor’s focus on devolution, expanded SME finance and closer EU collaboration welcomed in key speech

Richard Blackmore from The East Midlands Chamber

The East Midlands Chamber has given its collective reaction to Chancellor Rachel Reeves’s annual Mansion House speech, delivered on 14th July.

Priorities set out in the Chancellor’s City of London address included:

• Devolving power to regions of the UK ‘at greater scale’
• Closer EU relationship with the ‘prize’ being ‘immense’
• The UK-EU summit to be rescheduled ‘as soon as possible’
• ‘Embracing the opportunities of AI while guarding against the risks’
• Expansion of small business finance

East Midlands Chamber Director of Policy and Insight Richard Blackmore said: “For growth, business must be incentivised to invest and that’s something we’ve seen, from our Quarterly Economic Survey, to have stalled in the East Midlands in recent months, so some of the supportive approaches highlighted by the Chancellor are a welcome step forward, with the caveat that they must be delivered at pace.

“Improved collaboration with the European Union is essential for improved trade, for example, but with what detail exactly, and when – when is the delayed UK-EU summit to take place? Likewise, devolved powers being given to regions ‘at greater scale’ is what business needs to hear – but when? The gas pedal needs to firmly pressed on devolution to unlock the significant – and essential – benefits it will ultimately bring to Leicester and Leicestershire, where investment from the centre has dwindled.

“When firms have been grappling with sky-high energy costs and business rates have disproportionately impacted sectors like hospitality, manufacturing and small businesses – plus recent news that once signed-off East Midlands infrastructure projects like A46 and A38 improvements were stopped dead in their tracks – business needs greater support.

“With a new Prime Minister taking post soon, Government should take the opportunity to improve the playing field for firms – that means ensuring the Chancellor’s Mansion House priorities around greater small business finance eligibility, closer collaboration with the EU and expanded devolution really are delivered at pace.

“It also means a root and branch review of business rates is urgently needed, wider-reaching energy support packages must be introduced and stalled transport infrastructure plans in the East Midlands, like the A46 and A38 improvements, must be reinstated.”