BUSINESSES across the country see devolution as an opportunity for growth, to promote competition and kick-start regional economies, according to a survey.

A poll of more than 1,000 business leaders by the Institute of Directors (IoD) revealed 65 per cent were in support of the Government’s plans to devolve powers to cities and regions.

IoD members supported giving combined authorities significant extra powers on housing, planning, transport, education, skills and local taxes.

But businesses were clear that tax-raising powers should not be used by local authorities to raise rates or increase the complexity of tax rules.

More than half (56 per cent) of IoD members said they were concerned that devolution could lead to higher taxes or additional tax compliance costs.

The IoD is calling on local politicians to put enterprise at the heart of the devolution settlement.

The Chancellor, George Osborne, has given local authorities until September 4 to submit a case for devolving powers to their regions as part of his spending review.

Graham Robb, North-East chairman of the IoD, said: “The IoD has been pushing the devolution agenda in the North-East for some time because the Northern Powerhouse doesn’t stop at Manchester.

“Local politicians and businesses must work together to put forward a credible plan to convince the Chancellor that we should get additional powers over transport, skills and planning as soon as possible.

“Time is running out to meet the deadline for the Spending Review this autumn, the North-East must seize this opportunity with both hands.”