Womble Bond Dickinson looks at the Government's economic strategy

Nigel Emmerson, Partner and head of the Newcastle office said: “The Chancellor’s announcement, whilst still lacking in some detail, appears to be driving through on Truss’s promise of a bold plan to cut taxes and offer support to aid growth, along with energy support for businesses and households, which is positive overall for the North East.

Read more: The Budget statement as it happened

“Confirmation on the short-term fix of a six-month energy business support package, whilst encouraging, still throws up unanswered questions. Which companies will be deemed vulnerable beyond this? Businesses rely on certainty so will the guarantee of a support package to be reviewed in a few months’ time be enough to protect them? Many companies and public sector organisations will need additional support so a tailored package beyond six months is a necessity. Let’s hope for more clarity and action to see businesses through the winter and beyond. 

“The reversal of the hike in corporation tax is also welcomed and will hopefully go some way towards spurring business growth and inward investment.

“Plans to transform brownfield sites and other locations into freeports and “investment zones” will be accelerated within more than 40 sites i.e. freeports are very encouraging for the levelling up agenda and will go towards creating a very appealing investment opportunity throughout England and, ultimately, the wider UK, with the Tees Valley, West Midlands and Somerset amongst those areas set to benefit from the scheme.

Simon Clarke watches as the Chancellor delivers his Budget (Image: PA)

“It has been hugely positive to see Simon Clarke step into post as the Levelling Up lead and I expect there will be much faith placed in him from North East businesses on delivering what is needed to see funding released and ensure key projects are put underway in the region. We hope to see further clarity on this and indeed the wider economic outlook for the North East in the main Budget later this year.

“The frequency and unpredictability of recent political events and announcements will have understandably added to the stresses and strains of businesses cross-sector, many of whom who have already weathered numerous years of economic upheaval. It is hoped this is the tip of the iceberg in terms of what support we might expect to see for the region’s business community in the weeks and months to come.”

Peter Snaith, Partner, Global Business Team and manufacturing sector head said: “The Chancellor’s ‘emergency budget’ has been a cause for much anticipation by those in support of UK Freeports. Truss has been vocal in her backing of them prior to and throughout the recent Tory leadership race, with much talk around her vision for ‘full-fat freeports’.

“Extending the package of benefits at freeport tax sites to a larger footprint of nearly 40 new investment zones across more parts of the country is very good news to unlock growth across the UK. We await further details, but the Chancellor is effectively extending the package of tax incentives already available on 'tax sites' that were created at the eight freeports under the government's existing freeport policy. This is not a U-turn. It is a welcome development that will extend the benefits already available, which are beginning to attract manufacturers and other inward investors onto freeport sites.

Liz Truss on her way to hear the Budget speech (Image: PA)

“Until now, businesses and communities in the hinterland surrounding our freeport sites have sometimes struggled to appreciate how they will benefit from the trickledown effect of new businesses and high-quality jobs that are beginning to come into the area. The developments today mean that reliefs from stamp duty, employer national insurance contributions and capital allowances and other benefits that are already available inside the freeport boundary will now also be available in the surrounding areas, enabling direct access for supply chains, support services and social infrastructure developers to the benefits which can encourage and support new investment.

“Sceptics continue to flag the risk of the policy simply moving investments around, with existing businesses relocating to enterprise zones rather than creating new jobs. The investments we are beginning to see into freeports would indicate this is, or was, unlikely to be a widespread issue. However, concerns around this will be heightened with many more areas benefitting from the package of incentives available.

“It is very positive that so many new areas across the country are now set to benefit from the package of incentives, but it is important that ports remain central to the initiative. As the former chancellor's original freeport proposal identified, freeport jobs are created in areas where economic need is higher.

"When the freeport concept was first conceived, 17 of the UK’s 30 largest ports, were in the bottom quartile of Local Authorities when ranked by the ONS’ Index of Multiple Deprivation and three quarters were in ‘below average’ Local Authorities. Progress has been slow but investment around our ports is making a difference and keeping ports (including seaports and airports) at the centre of government policy can deliver the double whammy of attracting inward investment whilst also boosting exports and the positive balance of trade.

“Whether policy is linked to freeports, levelling up or some other slogan, the continued investment in supercharged enterprise zones at our hubs for cross border trade coupled with the investment in transport and infrastructure can serve to rebalance our national economy whilst also boosting international trade and supporting innovation that our manufacturing sector and other sectors need to remain globally competitive.”

Key moments:

• Stamp duty is cut
• Universal Credit changes
• The Mini-Budget as it unfolded