RTC North Chief Executive, Jamie Ollivere's Response to the Autumn Budget
RTC North Chief Executive, Jamie Ollivere's Response to the Autumn Budget
As I read through and reflect on yesterday’s Autumn Budget, it’s exciting to see a commitment to invest. It seems so obvious, but you don’t create anything unless you invest. The government is duty-bound to invest in things the private sector can’t get returns on in the short term, and if they do so correctly, private investment will follow. Through the multiplier effect, the local foundational economy grows too.
It’s tough for some, but the budget is a balanced approach, with the government walking a fine line between fiscal responsibility, restoring public services, and stimulating investment to support small businesses and the broader economy. The budget's announcements carry some positive signals for regional development and the advancement of business growth, productivity, and competitiveness across the UK.
Most significantly for me, though, is leadership. Regardless of politics, having stable leadership, a vision, and a plan will drive confidence and deliver a mindset for growth. There has been so much change in leadership over the last decade that it’s just impossible to believe in anything. That goes across government departmental leadership too. There has been a change in Housing Minister every year for the last 15 years. You can’t run a business with so much change, so how can we run a country like that?
Notably, the budget introduces several important national strategies, including the National Industrial, Small Business, and Trade strategies, which will work in tandem – a plan. Having this vision is so important, and the tireless work of MAKE UK in championing a new industrial strategy should be commended.
Just as in business, where having a clear sense of direction empowers teams to understand how they contribute to the bigger picture, these strategies serve as a guiding “north star” for stakeholders across the country. By aligning our collective efforts, resources, and creativity, we can make strides in strengthening our economy, fostering innovation, and ultimately enhancing our impact.
The Chancellor’s decision to increase Employers’ National Insurance by 1.2% to 15% starting April 2025 was anticipated. It’s a big hit for some; however, many small businesses will benefit from the raised Employment Allowance, which will increase from £5,000 to £10,500. This move is a welcome relief for smaller businesses, shielding them from the full effect of the rise. For those in retail, hospitality, and leisure, the minimum wage rise and rate relief changes from 2025 will be tough, which could mean pressure on jobs and prices. In theory, though, overall growth in the economy should mean the foundational economy grows and spending locally goes up.
In terms of supporting small businesses with growth, however, the budget did include a one-year extension of the UK Shared Prosperity Fund (UKSPF), albeit at a reduced level of £900 million. This funding is vital as it helps preserve local ecosystems through retaining talent and supports continuity at a local level.
This does need to go further to match a longer-term national strategy for growth by addressing the challenge of short-term funding cycles. Without long-term, stable funding, it’s difficult to create the level of planning necessary for substantial change. We hope for more clarity around wider local growth funding reforms to support this goal. Let’s also remember that UKSPF was originally designed to replace EU funding, a principle we believe must be upheld to maintain essential investment levels.
A promising development for local growth funding reform is the move towards phasing in Single Settlements for Mayoral Combined Authorities (MCAs). This change offers greater autonomy and flexibility to MCAs, empowering them to tailor growth strategies to unique local needs.
The budget included several measures geared specifically towards supporting small businesses. In addition to the National Insurance relief, the government announced continued funding for the Growth Hub network and the Help to Grow Management initiative. Additionally, the doubling of funding for the Made Smarter initiative is encouraging as it enables manufacturers to embrace digital technology, boosting their productivity and competitiveness in a fast-changing marketplace.
Having a growth vision for the future economy is brilliant, but over the next 10 to 20 years, labour supply will be the challenge. Like many economies, we have an ageing workforce, and we need to plan for that.
At RTC North, we are passionate advocates for advancing STEM skills, so I was especially pleased to see an increase in school budgets aimed at addressing the teacher recruitment crisis in STEM subjects. This uplift is a critical step towards building a strong future workforce equipped with the right skills needed to drive innovation and growth in our industries. The grounding in the right kind of subjects is important – as some of the actual careers haven’t even been invented yet!
But it’s not all about young people; there is talent across all ages of the economy, and we should also ensure we get the best from those later in their careers. Those in their 50s, 60s, and beyond have so much experience and knowledge to offer, and we need to keep this value in the economy rather than them heading towards being full-time retirees. This, of course, has the added benefit of keeping them as tax-paying ‘workers’.
While the Office for Budget Responsibility (OBR) still projects limited growth over the next five years, I am more optimistic than that and welcome this ambitious budget. It feels good at least to have a new positive approach and a long-term commitment to economic, social, and environmental transformation. It’s too early to say for sure, but I was in a room of 100 businesses this morning, and the mood was good. There seems to be a plan, and that felt good.
At RTC North, we are ready and want to contribute to this plan. We are dedicated to helping deliver an economy that creates opportunity for all, supporting regional growth, and ensuring that businesses and communities alike have the tools they need to thrive. Together, we can make a lasting impact.