Chamber and STEM sector see positives in Reeves’ Spring Statement

At the North East Chamber of Commerce, Rhiannon Bearne, executive director of policy & representation and deputy CEO, said:  “The Chancellor’s statement comes at an important moment for North East businesses and employers. Just as she tries to balance a tough set of fiscal conditions against more positive projections for growth, our businesses and employers face the same challenge.

“The Chancellor’s focus on the UK as a defence industrial superpower plays to our region’s strengths. Fifteen percent of defence spending in the North East is with SMEs, the largest proportion of any region in the UK. With exciting developments from NETPark in Sedgefield and BAE systems in Washington, suppliers across the North East are ready and waiting to play a central role.

“It is positive to see support for a new £625 million package to boost construction skills, alongside new apprenticeship and adult education support. This reflects calls made in both our Local Skills Improvement Plans delivered on behalf of the Department for Education and will help the region play a full and active role in delivering the government’s housing and infrastructure ambitions.

“It is also good news that local authority budgets and key departments such as education and communities have been protected from real-terms cuts. Investing in our schools, colleges and local services is the backbone of sustainable economic growth. Therefore, we will be urging the government to make sure the proposed cuts to civil service administration safeguard some of the important work happening in the North East.

“For a region where one in four of our workforce are economically inactive, it remains to be seen how the proposed welfare cuts will affect households. The government’s commitment to additional employment, health and skills support is therefore welcome, and we would urge the government to consider bringing this forward from 2026–27 for regions like the North East, where the biggest difference can be made now.

“The Chancellor used strong language around stability and growth. We will work with our members to translate those signals into action.”

Tania Cooper, Chair of the North East STEM Foundation told us: “Focusing on critical technologies like artificial intelligence, quantum computing, and supercomputing is vital for our country to gain a competitive edge.

Tania Cooper (Image: Submitted)

“This push will inspire our young people to pursue careers such as scientists, engineers, and technologists. There also are lots of STEM-related career opportunities in the defence sector, which will be created on the back of the £2.2 billion boost received in this statement. Increasing the diversity of STEM career paths should be a cornerstone of our educational and economic future.”  

Dr. Arnab Basu, chief executive of Kromek, said: “The increase in defence investment and the government’s commitment to innovation-led growth are welcome developments.

“The creation of UK Defence Innovation, backed by an initial ringfenced budget of £400 million, and the move towards faster, more agile procurement processes have the potential to create significant opportunities for the UK’s technology sector.”

Ian Atkinson, partner at Womble Bond Dickinson in Newcastle and Teesside said: “Chancellor Rachel Reeves’ announcement of the £625 million package for skills in construction, expected to provide up to 60,000 new skilled workers, is a potential game-changer for the industry.

“This investment will help bridge the skills gap, ensuring we have a qualified workforce to meet the growing demand for housing and infrastructure projects. With experienced workers retiring, a long-standing diversity issue to address, major changes in construction-related legislation, and the implementation of increased technology and innovation, this funding is crucial, but needs to come quickly so that challenges around construction skills become a thing of the past, and future talent is attracted to the industry.

“This will enable the sector to efficiently deliver high-quality, sustainable buildings while at the same time creating well-paid jobs that drive economic growth.”

The Chemical Industries Association, which has members across the North East, told BUSINESSiQ: “Against a backdrop of very limited economic growth and public expenditure squeeze, today’s Government Spring Statement does however offer some opportunity for UK business investment.

“The increase in defence spending should give encouragement to key foundation industries such as chemicals as suppliers of essential components and equipment to the defence sector.  Similarly, progress on planning reform to underpin an accelerated house-building programme over the next 5 years should translate into growth opportunities for construction chemical suppliers. 

“Let’s not forget however that these opportunities for chemical businesses will only be maximised if they are matched over the coming weeks and months by concrete action to tackle the fundamental competitiveness challenges faced by many U.K. manufacturing sectors – namely crippling energy costs; incoherent carbon reduction policies and access to key skills.

“Address these constraints and we’ll see a rise in investor confidence in the UK and the return of much needed economic growth across the country. “