Bernard Ginns: Osborne brings relief to the long-suffering private sector

For many years, businesses have faced an ever-rising tide of ill-conceived legislation and direct and indirect taxation while state spending ballooned to unsustainable levels.

Hearing the new chancellor's promises of unprecedented cuts to the public sector, the long-suffering private sector breathed a deep sigh of relief. At last, they said, here is someone in government who understands the needs of business and the necessity to cut your cloth accordingly. Many corporate types I have spoken to since last Tuesday also expressed some relief. They had been expecting much worse, particularly in tax.

I wonder if Mr Osborne knows this and is storing up rises for the future.

But whatever he might have in mind going forward, he seems to understand the basic underlying truth that business is the only thing that's going to save Britain from drowning in its own debt.

His government has already started work on stripping away public spending that could hardly be called essential. This is likely to go down well with most in the business community.

The hope for business is that this cutting is done in a careful way which does no lasting harm to the wider economic recovery. That is the big fear expressed by United States president Barack Obama at the G20 summit.

n A BIG issue for business should be the future role of economic development, now that the writing is on the wall for Yorkshire Forward, the regional development agency.

The 22 heads of Yorkshire's local councils met on Friday to decide whether regional or local delivery is better for economic development in this part of the world.

Activities include sector development – such as backing for low carbon, advanced manufacturing or digital industries – inward trade and investment, business support, skills development, regeneration and access to finance.

In keeping with the coalition's preference for all things local and the belief in strong cities, those council leaders agreed to create smaller local economic partnerships, which will work in tandem with business.

They also agreed on the need to retain the ability to peform some functions at a regional level.

Thea Stein, the new chief executive of Yorkshire Forward, told me yesterday: "We know that regional development agencies are being abolished, but what's important is the economic development functions that work for the region are not being abolished.

"The debate we want to have is what's the best way of organising that? Where is the best place for them to sit? Within local authorities? With groups of local authorities like a city region? Is it them all coming together with an organisation that works on behalf of Yorkshire and Humber?"

She added: "We really welcome the fact that the majority of local authority leaders have indicated very strongly that they are supportive of somebody continuing to work on behalf of the region in the field of economic development and recognising the strength of the Yorkshire brand.

"We also welcome the development of local economic partnerships and are working with them on the model for the future."

Businesses in Yorkshire will have a view on this. Many I suspect will argue that Yorkshire does need some kind of regional body to give it a voice in London, Brussels and further afield.

Time is of the essence, however. The local authorities of Yorkshire will be writing to Cabinet Ministers Vince Cable and Eric Pickles this week to set out their views on what they want in the field of economic development.

I expect there will be politics involved, which is why it is important for Yorkshire's business leaders to make their voices heard. What do you want? What would work best for your business? Email me and tell me what you think.