Business must be ‘at heart’ of Burnham’s devolution plans, warns BCC

Businesses must be “at the heart” of the Prime Minister’s plans for devolution in next month’s Budget, the British Chambers of Commerce has urged.

The influential business group said firms are vital to “deliver growth, investment and higher living standards” across the UK.

Shevaun Haviland, director general of the group, said: “Business want and need devolution to be a powerful engine for local and nationwide growth.

Shevaun Haviland said devolution ‘can be a powerful driver of economic growth’ (Jordan Pettitt/PA)

PA Wire

“They are ready to be at the heart of the journey ahead.”

It comes around a month before Andy Burnham and Chancellor John Healey will unveil their first autumn Budget amid a challenging economic backdrop.

Earlier this week, Mr Burnham said he will need to take “difficult decisions” on the economy to ensure that it “remains on track”.

Earlier this month, the Chancellor reiterated the Government’s commitment to transferring power out of Whitehall, saying he would set out a “road map to fiscal devolution” at the Budget.

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.

Ms 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.”