Turning Labour's growth mission from ambition to action

FOLLOWING the Government's recent Spring Statement, firms across the North East are coming to terms with the economic reality in which they'll be operating for the foreseeable future.

- MATT BRATTON

Many of the announcements focused on reducing public sector spending, so with public finances tighter than before, it's clearer than ever that only the private sector can provide investment at the pace and scale we need to boost productivity, create jobs and improve living standards.

While the Chancellor's lack of further asks from private businesses provides a degree of relief, the economic outlook remains uncertain. Forecasts of weaker growth come as no surprise given the mounting pressures that companies have been facing, and significant concerns remain for firms operating in a tight fiscal environment.

Decisions made in the Autumn Budget - alongside changes to the Employment Rights Bill and increased NICs beginning this month - have resulted in some firms freezing hiring and passing on their higher operating costs to consumers - squeezing household budgets, weakening demand, and making growth harder to achieve.