Devolution deal announced for Hull and East Yorkshire could grow region's economy, says senior figure at KPMG
The planned deal was announced as part of Chancellor Jeremy Hunt’s autumn statement, after several months of negotiations between Hull City Council and East Riding of Yorkshire Council and the Government.
Euan West, the Leeds Office senior partner at KPMG UK, said: “We’ve seen in West Yorkshire and in other parts of the country that devolution deals can make a big difference in ensuring that investment is channelled into projects of local economic importance. I hope that the deal announced for Hull and East Yorkshire will grow the region’s economy, attracting further investment and jobs and skills for local people. West Yorkshire being named as one of the Government’s Investment Zones is fantastic news for our region. The investment zone, coupled with the funding for a mass transit system, means West Yorkshire will be well placed for growth and innovation, creating more jobs and opportunities for local people and businesses.”
Mr West’s colleague, Daniel Head, who is head of tax for the North at KPMG UK, said that, as inflation dropped and tax receipts saw a notable uptick, the Chancellor unveiled some tax cuts designed to boost growth.
"Among these measures was a considerable reduction in National Insurance rates for employees, dropping from 12 percent to 10 percent. This move will be welcomed by workers throughout Yorkshire, although with income tax bands remaining frozen it is unlikely to leave people better off.
“We also saw the Chancellor announce a significant boost for businesses in Yorkshire and around the country by making full expensing permanent. “However, businesses in Yorkshire will be looking for more certainty over the next 12 months as the Government attempts to strike a balance between its electoral ambitions and helping the economy in the long-term. For businesses, certainty is one of the biggest factors for them to feel confident in making investments and we’ve seen recent uncertainty play out through hesitancy in the deals market.
“The risk the Chancellor has made with these announcements is the headroom he did have will now be reduced and if any further headwinds were to appear, this could put him in a tricky spot. So we will have to wait and see if the gamble pays off.”