North-East business leaders react to the No vote

This morning, newspapers from the North East, North West and Yorkshire, including The Northern Echo and The Journal, have taken the unprecedented step of joining forces to demand a fair deal for the region - including the power and funding needed to manage our own affairs.

Mr Robb said: “Businesses will breathe a sigh of relief that the Scottish people have opted to remain within the Union, but now is the time for the North-East to push for greater economic powers. There should be a change to the City Deals programme to allow the LEPs to spend more central government money within our region and the first target for the enhanced City Deal should be the transport budget. Transport is the number one priority for members of the IoD and it is clear that better connectivity and infrastructure is vital to the economic success of the region.

“Politicians will be pressing for more powers, but we must avoid expensive new structures and more bureaucracy. The priority should be the redirection of resources from London to the North East, not the establishment of new bodies or talking shops.”

Ted Salmon, Federation of Small Businesses North East Regional chairman, said: “The referendum result will have a big impact on our members and small businesses across the North-East.

“While the people of Scotland have said no to independence the extra powers that have been promised by the Conservatives, Labour and Liberal Democrats will be a big challenge to the North East and our future economic growth.

“For small businesses to be able to compete we need to see the Government now commit to decentralising more powers to the region from Westminster to ensure that we can compete on a global scale.

“Alongside this decentralisation of powers to be effective needs to be matched with a stronger decentralisation of funding to ensure we can achieve tangible success.”

Jeremy Middleton is founder of Middleton Enterprises, a £50m investment company, as well as being a Board Member of the North East Local Enterprise Partnership.

He said: “The result of the referendum is to be welcomed, because it is good for the UK and good for Scotland.

“However, the debate has raised a lot of questions for the North East, particularly because all Parties have heralded the rapid introduction of new powers on tax and spending for Scotland, which will potentially have very significant repercussions for the region. Depending upon what powers are given, we may be looking at changes to Corporation Tax, which could entice businesses North of the Border, or VAT rates which could affect spending in the region by enticing shoppers to Edinburgh or Glasgow, rather than the MetroCentre or Newcastle, for example. Likewise, incentives for investment in Scotland could drive investors North.

“Here in the North-East, existing organisations, such as the Local Enterprise Partnerships, need to get together to make the case for changes which will rebalance the economy to the North of the country. We need to be calling for such things as lower air passenger duty for all regional airports, an HS3 system, which starts in Edinburgh and comes down the East Coast and improved road links with Scotland. We should work with Scotland to put together mutually beneficial plans for such infrastructure improvements, and then take them to the UK Government.”

Heather O’Driscoll, Managing Director of chartered accountants and business advisers, Waltons Clark Whitehill, said: “The vote to keep Scotland in the Union will have a huge impact upon the North-East. The debates surrounding the referendum have highlighted the need for the region to make a strong case for a larger share of funds and greater decision-making powers. However, it is important that this does not bring with it an extra layer of bureaucracy.

"Organisations such as the LEPs should be utilised to put such funds and powers to the best use for the region.”