Today’s budget announcement from Chancellor Rachel Reeves has been one of the most anticipated in recent memory, with nearly all government policies and initiatives hinging on its outcomes. In the coming days we will break down exactly what this means for the East of England, but on the surface, it seems the budget has been designed to address urgent needs in our public services while setting ambitious goals for future growth. It signals a commitment to creating a resilient economy, blending fiscal responsibility with forward-thinking investments, and the potential for generational change.
With £40 billion in additional tax revenue, the government intends to fund critical social programs, bolster education and health services, and drive industrial growth. However, it’s disappointing to see that the East of England has been largely overlooked. Our region offers exceptional value for money, with some of the highest infrastructure returns on investment, yet we have received minimal support or backing.
One of the regional unanimous top priorities was to "Unblock Infrastructure" delays, which have been completely ignored. Key projects, such as the Ely North and Haughley rail junctions, hold the potential to significantly boost both regional and national prosperity.
However, on infrastructure investment, we welcome the commitment to East West Rail and the Oxford-Cambridge corridor development, this could be transformative. This investment has the potential to connect vital industrial hubs, expand housing availability, and build out infrastructure essential for the continued growth of Cambridge but we plead with government that is stretches beyond Cambridges boarders to the Eastern region.
As the Eastern Powerhouse has long argued, infrastructure upgrades not only enhance connectivity in our rural area but unlock opportunities for housing, laboratory space, businesses and growth in the life sciences cluster, further cementing our position as a global leader.
James Palmer, Chair, Eastern Powerhouse said:
"The Eastern Powerhouse notes the major investment into devolved governments and large city regions which have been included in Chancellor Reeves Budget. It is clearer today than ever before that large Mayoral Combined Authorities have an advantage when it comes to gaining significant government funding. We would therefore urge local government leaders in the east to work together and form a strategic vision for the East of England. The Eastern Powerhouse wants to see the kind of government support for our region mirror what we see invested into other parts of the country. Our view is that our leaders need to work more closely and offer the government a unified approach - at-scale Mayoral Combined Authorities covering the whole of the East"
Steven Lynch MBE, Executive Director, Eastern Powerhouse, said:
"Businesses in the East will feel the effect of the rise to employer NI contributions from next April but the issue is whether there is enough in this budget to incentivise growth. There are a number of welcome commitments to investments in key industries for the East, like Life Sciences, as well as to R&D more generally. The changes to the fiscal rules will hopefully create some much needed room for public investment in growth."
