What North East leaders want from the Autumn Budget

Chancellor Rachel Reeves will take to the House of Commons at 12.30pm on Wednesday (November 26) to deliver the Autumn Budget.

Setting out the state of the country’s finances, the state of the economy, as well as taxes and plans for public spending, Reeves is widely expected to pull the lever on tax hikes in order to fill a black hole in the public finances.

But leaders in the North East are hoping her speech will set out policy that will help boost business, lift children out of poverty and even reopen the Leamside Line in County Durham.

The North East Child Poverty Commission

The North East Child Poverty Commission have reissued calls for the Chancellor to lift the two-child benefit cap – following months of campaigning.

In a letter to Chancellor Rachel Reeves in September, the commission urged the government to lift the “cruel” policy, as they believe such a move would lift thousands of children out of poverty.

First introduced in 2017, the cap means families are unable to claim child benefit for a third or subsequent child.

The policy is said to impact 70,000 babies, children and young people in low-income families across the North East. Lifting it would cost an estimated £3 billion.

Now, they have one final plea to Rachel Reeves ahead of the budget.

Chair of the North East Child Poverty Commission, Beth Farhat, said:  “The Government has made a vital pledge to break down barriers to opportunity for children and young people across all parts of our country, including by reducing levels of child poverty.

“It’s clear that bold action on this issue is increasingly urgent with a record 4.5 million children growing up in poverty across the UK, including around 170,000 here in the North East.

“As things currently stand, these appalling numbers are only predicted to rise even further in the coming years.

 “This Autumn Budget therefore represents a pivotal moment for the Government to demonstrate how it will turn its welcome commitment on child poverty into real action for families across our region, so that all children have the chance to thrive and achieve their potential.

“At the very top of their to-do list should be scrapping the two-child limit in Universal Credit. This cruel policy already impacts 70,000 North East babies, children and young people in families both in and out of work, and we know it is causing immense and avoidable hardship.

“Doing so, in full and without delay, would immediately lift tens of thousands of children out of poverty across the North East – and would see tens of thousands more experiencing less deep poverty.

“This won’t be a silver bullet – but would be a really significant investment in our children’s futures, and would demonstrate the Government is serious about making good on its commitment to turn the tide on child poverty.”

All will be confirmed in her speech, but Reeves, as well as the Education Secretary, have previously suggested that scrapping the cap may be on the cards.

In September, Phillipson stated, “everything is on the table, including removing the two-child limit.”

The North East Chamber of Commerce

For the North East Chamber of Commerce, their message to the Chancellor is to make sure businesses in our region have space to grow.

The Chamber, which represents more than 2,000 organisations across the region, has called for policy that can sustain long-term growth.

Rhiannon Bearne, deputy chief executive at the North East Chamber of Commerce, said: “As businesses across the North East continue to navigate rising costs and fragile confidence, it’s essential that this Budget delivers stability, clarity, and a genuine plan for long-term growth.

“That starts with no new taxes on business and a commitment to policies that help businesses to invest, hire and grow.

“Our region has the potential to drive the UK’s transition to cleaner energy, build world-class skills and accelerate innovation, but employers need the right conditions to get on with the job.

“On Wednesday, we want to see measures that give businesses certainty, unlock investment and back the North East to deliver the growth we need.”

Elsewhere, Reeves has been warned not to inflict “death by a thousand taxes” on British business in Wednesday’s Budget.

The head of the Confederation of British Industry (CBI) Rain Newton-Smith said the Government must “change course” and avoid heaping more costs on firms.

“Prove it – against opposition, against short-term politics, be it on welfare, be it pension increases, show the markets you mean business,” she said.

“Short-term politics leads to a long-term decline, and this country cannot afford another decade of stagnation.

“That means making hard choices for growth now before they get harder, having the courage to take two tough decisions rather than 20 easier ones.

“Raising the headroom to make promises stick, it means one or two broad tax rises, rather than death by a thousand taxes.”

North East Mayor Kim McGuinness

For North East Mayor Kim McGuinness, a number of issues relating to both transport as well as the two-child benefit cap are at the forefront of her mind.

The mayor has previously thrown her support behind lifting the cap and said it is the “right thing” to do.

But other major projects include the Leamside Line – a mothballed railway line running through County Durham should it re-open in full, would provide rail links for over 100,000 people.

It was last used by passengers in the 1960s before it was scrapped in the early 1990s.

But, politicians have been campaigning for years to pressure successive governments into backing a reopening of the Leamside Line, which runs from Pelaw in Gateshead to Ferryhill in County Durham.

According to the latest figures, bringing the full line back to life could cost well over £1 billion.

Speaking ahead of the budget, North East Mayor Kim McGuinness, said: “I want families to be able to keep more of their money in their pockets.

“That’s why I’ve been making our demands heard ahead of the Budget and calling for the two-child cap to be lifted, as well as making our public transport more affordable.  

“I’ve made it clear in my discussions with Treasury ministers that we need them to invest to keep our £2.50 local capped bus fare, that’s 50p cheaper than the national cap, and our £1 fare for young people.   

“I want to see movement to bring in new powers which would allow Mayors to introduce a visitor levy. This would bring in more investment to the region, and a small levy would allow us to do great things. I’ve been calling for this for a long time to provide a welcome boost to culture and tourism here in the North East.  

“But that’s not all. I’ve also been calling for the long overdue upgrade of the A19 Moor Farm roundabout, more trains for our incredibly successful Northumberland Line and the re-opening of a new railway line through County Durham.”