Key North East businesses  have started setting out their Budget strategies for Chancellor Jeremy Hunt as he prepares his March 15 statement.

Global technology company Sage has called on the Chancellor to prioritise pro-growth policies around tax incentives and technology to support small and medium-sized businesses.

Steve Hare, CEO at Sage, said: “Small and mid-sized businesses are the backbone of the UK economy. They make up 99.9% of all businesses and generated more than half (51.1%) of UK business turnover in 2022.

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  “We must build on this and accelerate the UK’s digital trajectory to become a high growth and high-tech economy. We urge the Government to prioritise tax incentives and technology in the upcoming budget, as these measures will help SMBs drive sustainable economic growth.

“As the UK economy looks to recover, it is crucial that the Government takes a bold stance on tax incentives. There is speculation that Jeremy Hunt will push ahead with cuts to research and development tax relief for small businesses in the budget. Doing so would be a mistake.

“When start-ups and SMBs are enabled to fully digitalise their business via tax incentives, they’re set up to streamline their operations, enhance their productivity and foster a culture of innovation. This, in turn, can drive sustainable economic growth and help the UK retain its position as a global economic powerhouse.

“It is a privilege to be a FTSE 100 tech business and we’re proud of our UK roots. Sadly, the country risks falling behind other nations if the Government fails to show it is serious about driving growth.

The Northern Echo: Chancellor Jeremy HuntChancellor Jeremy Hunt (Image: PA)

NEPIC - the North East of England Process Industry Cluster is part of a call from the wider chemical industry to the Chancellor telling him what he has to say on future direction is going to be as important as any financial incentives.

The budget submission from the Chemical Industries Association - which has NEPIC as an Associate member - says “In 2016 the UK received the second largest flow of inward Foreign Direct Investment (FDI) out of any country, behind only the US. In 2020 we’d slipped to 7th on the list, and just one year later we were 15th, behind European countries including Germany, France, Poland and Sweden.

“Without Government action now, we will continue dropping down the list. No major economy functions without a manufacturing sector.”

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A clear focus on the green economy and infrastructure is vital to the UK’s economic and social recovery, and should be essential elements of the Budget, according to the Association for Consultancy and Engineering, which has around 30 member firms across the North East.

ACE chief executive Stephen Marcos Jones said: “We would like to see the government make positive budgetary decisions in two areas. First, how we turn ambitions on the green economy and green growth into reality and, second, how we deliver on the infrastructure pipeline, despite tough economic times.”

The ACE budget submission includes a set of proposals for transport, procurement, communities and levelling-up, net zero, innovation and future skills and training.