Budget offers little for business, but mayoral authority status is an opportunity for investment, say Lancashire leaders

Lancashire’s business leaders have been given a boost for future investment and growth following a Budget which offered little in way of policies.

There is an opportunity for real investment in the near future after the Chancellor John Healey announced Lancashire could now start the process of becoming a mayoral authority.

Over 100 businesses gathered at Budget: Live, in partnership with Forbes Solicitors, today to watch the chancellor deliver his first speech under new prime minister Andy Burnham who has promised to ease pressures on businesses.

While there was some support for businesses, there is still a lack of clarity for a growth plan and policies were not enough to ease the burden, say the North & Western Lancashire Chamber of Commerce.

Policies including increasing the threshold at which high street shops start paying business rates, more rates relief for some small businesses, establishing a Founders Relief fund, increasing the trading allowance for entrepreneurs and further AI investment was broadly welcomed by delegates.

The expert panel, consisting of Vicky Pryce, Chief Economic Adviser and a board member at the Centre for Economics and Business Research (CEBR). Victoria Motley, Partner at Forbes Solicitors, Michael Gibson, a board member of Innovate Lancashire and Phil Simpson, MD of Lancaster Brewery, provided its initial assessment of the announcements and what they could mean for businesses. Host Paul Faulkner quizzed the panel on the Budget implications for business and how a Lancashire Mayoral Authority could operate.

Babs Murphy, chief executive of the Chamber, said: “The Chamber has consistently called on Government to back business growth through investment in skills, infrastructure, productivity and local economic decision-making.

“Today’s announcement on Lancashire’s Strategic Mayoral Authority status is a significant step forward and has the potential to unlock new opportunities for investment, growth and stronger local leadership across the county.

“Businesses across Lancashire have long argued that decisions affecting their communities and economies should be taken closer to home. Greater local control can help ensure that investment is targeted where it will have the greatest impact and that the voice of business is better reflected in future priorities.

“The extension of business rates relief will be welcomed, it is not, on its own, a game-changing measure for growth.

“This was largely a Budget of continuity rather than one of major reform. The real test will be whether the Government can translate these commitments into improved infrastructure, stronger skills provision, support for investment and policies that help businesses grow, compete and create jobs.

“The Chamber looks forward to working with Government, local authorities and the emerging Mayoral Authority to ensure Lancashire secures the investment, powers and long term support needed to maximise this opportunity for businesses and communities alike.”

Emma Swan, Head of the Commercial Division at Forbes Solicitors, commented: “The Chancellor’s commitment to save businesses £800million by cutting red tape will be welcomed by firms looking to focus on growth, innovation and investment. However, the detail matters. Until companies understand exactly which regulations and reporting will be streamlined and how changes will work in practice, the benefits remain unclear.

“Government must provide clear, timely guidance to ensure simplification genuinely reduces burdens and avoids any changes creating uncertainty and inefficiencies for businesses.

“As a business with deep roots right across Lancashire, it was also really positive to hear the Budget announcement for regional mayoral roles. A Lancashire Mayor will help our region to realise devolution ambitions, unlocking local investment opportunities and championing decision making that directly benefits local businesses and communities.”