North East Mayor calls for scrapping of two child benefit cap and improvements to rail network ahead of budget

The North East mayor Kim McGuinness has called for the chancellor to “make game-changing investment in our infrastructure” ahead of the Autumn Budget.

Rachel Reeves is set to announce the budget and the Government’s financial pathway for the year ahead on November 26.

North East mayor Kim McGuinness has written to the chancellor ahead of the budget.placeholder image
North East mayor Kim McGuinness has written to the chancellor ahead of the budget.

Ms McGuiness said: “The North of England has to be at the vanguard of the Government’s mission to unlock the growth the country and communities badly need.

“That’s why we’re calling on the Government to make game-changing investment in our infrastructure and wholesale reform of business support so we can unleash the potential of people and businesses.

“We stand ready to deliver for UK PLC, and there is no time to waste – so we can create jobs and opportunity for people we represent.”

Ms McGuinness was joined by the other mayors of the North in writing to the chancellor asking for the budget to address the key areas of improving rail network infrastructure, a reform of support for local businesses, and to lift the two child benefit cap - “taking 100,000 children in the North out of poverty”.

Ms McGuiness and her fellow mayors have called on the Government to deliver Northern Powerhouse Rail in full to provide “better connectivity across all places to create ‘a spine’ that connects the whole North”.

In the North East, Ms McGuiness is calling for the reopening the Leamside Line - which used to run from Gateshead to County Durham - to “ensure effective services through to Sheffield, Hull and the North East”.

Other specific requests outlined in the letter include significant upgrades to the Hope Valley line as well as improvements north of York and electrification of the Midland Main Line to Sheffield.

The letter signed by the mayors also specifies funding to create a new line from Liverpool to Manchester, running from Liverpool Lime Street via Liverpool Gateway, Warrington and Manchester Airport to an underground through station at Manchester Piccadilly.

The letter states the new line will “continue onwards to Huddersfield and Leeds via a new station in central Bradford and include electrification of the Leeds-Sheffield line”.

On the issue of child poverty the letter sent to the chancellor stated: “To go further we are united in our call for you to lift the two-child benefit cap — a policy change that would lift hundreds of thousands of children out of poverty, including over 100,000 in the North.

“Many Northern communities are disproportionately affected by the two-child benefit cap, with higher rates of child poverty. Its impact is most acute in areas of entrenched disadvantage.

“Reversing the cap would lift around 630,000 children out of poverty nationwide — with the North seeing the greatest impact. It is one of the most cost-effective and immediate levers to reduce poverty and unlock opportunity.”

The letter also urges Mrs Reeves to “support the businesses that power our local economies which ensure our communities thrive”.

In the letter the mayors stated: “We are now calling on government to ensure the successor to the UK Shared Prosperity Fund (UKSPF) delivers devolved, stable, and long-term support for business growth across the North, including through the rollout of its new Local Growth Fund.

“There is a need for all areas to have a sustainable funding model for business support to drive growth, including outside of city regions and including a replacement for the Rural England Prosperity Fund which has provided additional support in recognition of the challenges of delivering support in rural geographies and should be considered in future funding models.

“We must reimagine business support to grow the economy. Fragmented models fail to meet businesses at their point of need. We need a system that fosters entrepreneurship, celebrates success, and builds a thriving ecosystem of start-ups and scale-ups.

“Crucially, this must be underpinned by local government finance that is of sufficient scale and includes revenue support.”

Whilst each mayoral authority has submitted their own budget proposals, the letter, which is signed by all the mayors, stressed the North’s united front when it comes to tackling these three key areas.

The mayors stated: “Now is the moment to back the Great North: to unlock potential, attract investment, and build a business support system that drives inclusive growth.

“We’re asking for the tools to deliver what our communities deserve: a future of opportunity and prosperity.”

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