GREATER independence is needed for city regions to help them tackle the downturn, business leaders have warned.

Chambers of Commerce in the North-East, Yorkshire, Greater Manchester and Birmingham have all reported that their members are being hit hard by the downturn, and made the call ahead of today’s Budget and against a backdrop of poor economic results in the key city areas outside London.

The chambers, which represent businesses in the UK’s core cities, are now waiting an announcement in the Budget on which will be the first city regions to be given new powers to make decisions on economic development. The step of giving more economic power was announced in November’s Pre-Budget Report.

Chris Beaumont, chairman of the North-East Chamber of Commerce’s (NECC) Tees Valley committee, said: “Businesses and local authorities have worked hard in Tees Valley to put together an ambitious set of proposals for what can be done in the city region if Government is prepared to allow the right powers and flexibilities to be handed down.

“This will enable Tees Valley to make the maximum contribution to the North- East’s economic goals and to fulfil its role as a UK and world leader in a number of important industries – including the chemicals and energy sectors.

“We hope the Government will make a bold announcement on new city region powers this week, that Tees Valley will be included, and that the private sector will continue to be right at the heart of putting these plans into practice.”

The need for more specific support on the ground has been confirmed by the findings of the recent Chambers’ quarterly economic survey.

The core city results show that while all city regions have been hit hard by the downturn – in the North-East and Yorkshire they have been hit particularly hard in terms of capital and training investments, with the surveys showing that a higher percentage of businesses had reduced their investment plans in both areas.