North East businesses need lower costs and more local control over funding and decisions, former Bank of England chief economist Andy Haldane said ahead of the UK Budget on October 28, 2026.

Key Takeaways

  • Haldane said firms in north-east England had faced a decade-long squeeze.
  • Local business leaders also called for lower costs and more support for startups.

What North East businesses want from the Budget

Haldane, now president of the British Chambers of Commerce, urged the government to devolve power and funding locally. He said the region’s mayor, Kim McGuinness, needed powers to shape its future.

He pointed to clean energy, offshore wind, artificial intelligence and advanced manufacturing as business foundations for potential regional growth.

Employers highlight costs and startups

John McCabe, chief executive of the North East Chamber of Commerce, said businesses faced rising costs, particularly from taxation and compliance with legislation. He called for those costs to be cut.

Natasha McDonough, founder of Sunderland-based market research firm MMC Research, asked for more encouragement for startups. She said some people running side businesses alongside full-time jobs had ventures that could grow.

A Treasury spokesperson said Chancellor John Healey was focused on giving families and businesses breathing space, supporting jobs and driving growth while meeting fiscal rules. The requests from business leaders are proposals, not announced Budget measures.

Next milestone

Healey is due to deliver his first Budget on October 28, setting out the government’s tax and spending plans.

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