BCC press release: Business crucial to Burnham’s devolution next steps

Next month’s Budget should outline plans to put businesses at the heart of the next stage of devolution, to deliver growth, investment and higher living standards, according to a new report by the British Chambers of Commerce (BCC).

The report examines the changes happening in England to argue that the transfer of power from Whitehall to local areas must be judged by whether it helps businesses to invest, recruit and trade. 

A BCC survey of 5,000 firms in Q2 showed only 17% were planning to increase investment in the coming months, a post-pandemic low. 

The accredited Chamber Network is rooted in local economies across the UK, working with businesses of every size. The report argues that this experience of delivery and convening power can help ensure devolution delivers growth in every postcode. 

The BCC report sets out a three-stage roadmap to give local areas a bigger stake in economic success:

1. The Government should complete the devolution map by the end of the 2027-28 financial year, giving more local leaders power over funding to accelerate growth to improve living standards in their areas. The Chancellor should announce these plans at next month’s Budget.
2.  From 2028 until the end of this parliament, ministers should look to give local areas a direct share in the rewards of growth, through reforms such as greater business rates retention. These reforms will create clearer incentives to attract investment, support firms and create local jobs.  
3. Longer-term, after the next election, mature strategic authorities should be given limited powers to vary local taxes within nationally determined parameters. The aim should be to help places shape their own economic future and improve local livelihoods.

In the report’s foreword, BCC President, Andy Haldane, the former head of the Government’s Levelling Up Taskforce, argues the next stage of devolution ‘should be judged less by the architecture it creates and more by what it changes on the ground.’ 

The report sets out eight principles for successful devolution, including long-term funding certainty, stronger incentives for local growth, support for SMEs and ensuring businesses have a meaningful voice in local decision-making.  

It also recommends stronger mechanisms for business engagement in local growth plans and devolved economic strategies, drawing on the expertise and local knowledge of Chambers of Commerce across the UK. 

Shevaun Haviland, Director General of the British Chambers of Commerce, said: 

“Devolution can be a powerful driver of economic growth, but only if businesses are at the heart of the decisions.  

“As more powers are pushed out from Whitehall to regions of England, the test of success is simple. Does it make it easier for companies to invest, recruit, trade and grow? If it does, then devolution can raise living standards and spread opportunity in every postcode.  

“A sense of place has been at the heart of the Chamber network for generations. We are uniquely placed to bring employers, local leaders and communities together so that devolution delivers practical results on the ground.  

“Our report outlines both clear principles and a clear roadmap for the devolution journey ahead.  

“The government should start along that road at next month’s Budget. The immediate priorities must be to deliver a clear devolution timeline for every region, consolidate funding and build strong local partnerships. 

“Business want and need devolution to be a powerful engine for local and nationwide growth. They are ready to be at the heart of the journey ahead.”