Put business at the heart of devolution for Burnham’s ‘good growth’ plan, business group says

Two separate reports have revealed an appetite from businesses in the North to boost regional growth

A leading business group has urged the Government to put businesses “at the heart” of any power for more devolution, saying that private firms are vital to “deliver growth, investment and higher living standards” across the UK. Chancellor John Healey has followed the direction set by his predecessor Rachel Reeves in saying that he would set out a “road map to fiscal devolution” at the Budget.

Now the British Chambers of Commerce (BCC) has said in a new report that the Budget should outline plans to put businesses at the heart of the next stage of devolution and give more local leaders power over funding to accelerate growth in their areas.

A survey by the business organisation of 5,000 firms found in the second quarter of 2026 that only 17% were planning to increase investment in the coming months, a post-pandemic low. The BCC said in a new report that the Budget should outline plans to put businesses at the heart of the next stage of devolution to drive growth and investment.

It urged the Government to complete its devolution plan by the end of the 2027-28 financial year, giving more local leaders power over funding to accelerate growth to improve living standards in their areas. It added that ministers should look to give local areas a direct share in the rewards of growth before the end of this Parliament.

BCC director general Shevaun Haviland added: “Devolution can be a powerful driver of economic growth, but only if businesses are at the heart of the decisions.

“As more powers are pushed out from Whitehall to regions of England, the test of success is simple. Does it make it easier for companies to invest, recruit, trade and grow?

“If it does, then devolution can raise living standards and spread opportunity in every postcode.”

The Chambers’ intervention has come as a separate survey suggests that greater regional decision-making will have a positive impact on business growth. The survey by accountancy group BDO found support for more fiscal powers at regional and local level was strongly backed in the North East, the North West, and Yorkshire and Humber.

The survey also found that companies wanted the Government to prioritise increased business grants (43%) and taking equity stakes in strategic businesses.

Dan Brookes, interim regional managing partner at BDO in Yorkshire and the North East, said: “The Government is making all the right noises when it comes to creating the conditions for good growth in every part of the UK.

“Regional business leaders clearly agree that by giving regional mayors and local authorities greater control over locally raised tax revenues it will positively impact business growth over the next three years. The key now is making those pledges a reality in a way that flows meaningfully through the regional business community.”