Analysis: Hard for Osborne to ignore voice of business on flood defences

Warning of damage to '˜northern powerhouse' vision a powerful argument.
George OsborneGeorge Osborne
George Osborne

There is no shortage of groups telling the Government it needs to look again at flood defences in Yorkshire.

Council leaders, community groups and MPs have all made their voices heard in recent weeks. Leeds West MP Rachel Reeves will press the case again tonight in a Commons debate on the city’s flood defences.

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But the intervention from the Leeds Chamber of Commerce may be the hardest for the Government to ignore.

Since becoming Chancellor almost six years ago, George Osborne has emphasised the central role he wants the private sector to play in driving economic growth, not just by growing businesses and employing people but also sitting at the top table when major decisions are made in areas such as transport, planning and skills.

That is why when the Coalition abolished regional development agencies it replaced them with local enterprise partnerships bringing together business people and council leaders to oversee local economic plans.

Now the Chancellor finds a group of business leaders in the shape of the Leeds Chamber warning him in stark terms that the floods have put firms out of business and the absence of spending on better flood defences could harm the prospects for future private sector in the city.

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And critically, they suggest Leeds would struggle to play its full part in Mr Osborne’s vision of a ‘northern powerhouse’.

The Chancellor wanted the private sector to have a voice in policy making. Unfortunately for him, on flood defence spending their message is a tough one for him to swallow.