Paul Cherpeau, chief executive of Liverpool Chamber, highlighted how major infrastructure investment can enhance the city region’s economic growth prospects, saying:
“Businesses in the Liverpool City Region recognise that better transport can help them to power their growth plans through easier movement of people and goods in all directions.
“The proposed Liverpool-Manchester rail line, combined with further investment in the transpennine route, offers an excellent opportunity to maximise connectivity across the North West if it better connects our key strategic transport assets, including Liverpool John Lennon Airport. That enhanced connectivity can also boost our attractiveness as an investment destination. We have long-standing challenges with regards to movement of freight, particularly on the West Coast mainline, so the plans must seek to address those issues and improve access to and from other UK cities such as Birmingham.
“Ten years after the first promise of Northern Powerhouse Rail, then the subsequent failed High Speed Rail plans, there is understandable scepticism that projects can be announced and then dropped. Learning the lessons of HS2, it’s important to ensure local engagement and leadership is at the heart of the projects, supporting engagement with supply chain and the workforce.
“The revised ‘Green Book’ methodology is a welcome step towards expanded government investment outside the South East and a more authentic understanding of value for money. The Chamber looks forward to working with our public sector partners, transport operators and member businesses to ensure the economic benefits to our city region are fully realised through these transport and infrastructure projects.”
Greg Johnson, managing director of Bootle window and door maker Warwick North West, welcomed the £39bn uplift for social housing. Warwick is a growing supplier to the affordable housing sector.
He said:
“£39bn is a huge number but it is important to remember it is over 10 years which means £3.9bn a year. However, that is still a significant rise on the current £2.3bn spent a year.
“Earlier this week we talked about the plans for a New Town comprising 10,000 homes between north Liverpool and Bootle. At some point soon it would be good to see a decision on that. It would show real intent and ambition.
“What we as an industry are now looking for are more similar commitments that will help the Government achieve its target of 1.5m new homes during this Parliament. We need good quality, energy efficient, homes at both ends of the housing market.
“It was heartening, also, to hear progress on a new Growth Mission Fund to, as The Chancellor describes, “expedite local projects that are key to growth of towns and regions”.
“I’m pleased to see Southport Pier included in those plans. This is truly tremendous news for the borough, which has historically drawn investment from its status as a seaside town. As a business operating in Sefton, I’m fully behind the drive to reinvigorate Southport.
“Southport Pier is a powerful symbol of Southport’s heritage and can be a key asset in its ongoing regeneration.”
Colin Sinclair, chief executive of Knowledge Quarter Liverpool, welcomed the pledge to invest in the UK’s science and tech R&D, saying:
“Liverpool is already home to a world-leading cluster of health and life sciences innovation, so the announcement that we will receive a share of the £22bn annual investment into regional science and tech clusters is music to the ears of those within our city region who recognise its potential for significant future growth and the enormous economic and social impact these industries can have on our communities.
“There are major opportunities here to expand on specialisms such as materials chemistry, vaccine development and pandemic preparedness to create innovation super clusters through even greater collaboration through the quadruple helix partners from academia, the public sector, the private sector and the local community.
“We must also hope that the funding support for the new Liverpool-Manchester line not only heralds the start of a generational transport project that will better connect Liverpool with the rest of the country, but it also signals a shift towards greater capital investment in the North, underpinned by the government’s plans to review the Green Book approach and have a broader, more considered approach to public investment decisions in years to come.”
Alison Lobb, managing partner at Morecrofts Solicitors, added:
“This has been a challenging period for many business owners, with a swathe of cost pressures impacting on their ability to plan ahead effectively. Hopefully today’s spending pledges signal the beginning of a more positive period of investment in major projects to kickstart economic growth, both regionally and nationally.
“As a business with multiple offices across the city region, we welcome investment in local transport infrastructure that better connects the area and makes travel more accessible for our clients, staff and professional peers, while also creating opportunities for local communities.
“In the coming months, we would like to see more investment in civil Legal Aid, specifically for separating families to reduce costly and stressful court battles, and survivors and the accused in family law cases involving abuse allegations, to ensure everyone has access to family, community care and mental health support, while also reducing the strain on local public services.”
Sean Keyes, CEO at Sutcliffe, said:
“Following the Spending Review, it’s evident that planning delays, escalating costs, and ongoing labour shortages continue to hinder progress across the UK construction industry. While infrastructure investment has been promised today, the lack of clarity around long-term delivery is causing widespread hesitation—putting the government’s 1.5 million homes target at real risk. Nevertheless, Rachel Reeves’ £40bn pledge of grants and commitment to affordable housing is a bold and encouraging step. Doubling investment signals serious intent to tackle the housing shortage and support communities.
“There’s no denying that it’s a major boost for the sector, however the approach must go further: either by ensuring local authorities and developers can turn funding into real homes or setting out a new, realistic pipeline underpinned by a clear placemaking framework—something Homes England has long championed. The industry urgently needs certainty and sustained commitment. While Labour’s plans are ambitious, questions remain over whether the party can stay the course amid mounting political pressure on spending. And while the direction is promising, whether the government hits its 1.5m homes target remains uncertain and will likely go down to the wire.”
Thomas Pugh, economist at leading audit, tax and consulting firm RSM UK said:
“Given there were no significant increases in overall spending announced today, the spending review hasn’t changed our forecast of growth of 1.2% this year. Indeed, gilt yields barely moved in response to the announcements. Ultimately, the boost to the economy from higher government spending will still fade rapidly after this year and tax rises in the autumn are looking increasingly likely.
“Looking ahead to the Autumn Budget, by cementing in substantial increases in departmental spending, Rachel Reeves has made further tax rises look increasingly inevitable. Indeed, the recent U-turns on welfare and higher borrowing costs mean that the chancellor may need to find an additional £20bn in taxes later this year. That will be difficult without breaching any manifesto commitments or raising business taxes even further.”
John Gray, head of debt for Liverpool-based small business loan and investment specialist, River Capital, was pleased the Chancellor has committed extra funding to the British Business Bank to support SMEs.
River Capital works has worked with the British Business Bank since 2019 to deliver a number of North West-based funds that are supporting SMEs across the region, to the tune of tens of millions of pounds each year.
John said:
“Small and medium-sized businesses are one of the key drivers of the UK economy. They employ millions of people and are often responsible for significant innovations.
“If we want to raise the level of productivity then investment into the SME sector is critical. The British Business Bank’s total financial capacity will be increased to £25.6bn, which will enable a two-thirds increase in investments to around £2.5bn each year.
“This offers a vote of confidence in entrepreneurs up and down the country and it also gives an incentive to investors, such as the angel investors we work with through Gateway Angels, to back innovative ventures.”
Dean Rogers, managing director of Liverpool building firm Frank Rogers, said:
“After it was elected the Government pledged to get Britain building again and there are positive signs from this Spending Review they are ready to make good on that pledge.
“Obviously the higher spending on social housing will provide a stimulus for the UK construction sector and its supply chains.
“Also, the announcement of a record £1.2bn investment for skills by the end of the parliament is to be welcomed. Extra spending on construction is no good if we don’t have enough skilled people to deliver.
“We are also pleased to see a £1.4bn commitment to address the poor state of school buildings across the UK. Frank Rogers is active in the education sector and we welcome any effort to improve the learning environment for our children.”
Gregory Abrams, founder of law firm Gregory Abrams Davidson said the proposed Liverpool to Manchester railway could have a transformational effect on the city region.
But he insisted that for the city region to reap the full benefits of the line it needs to also include a station for Liverpool John Lennon Airport as well as Manchester Airport.
“Mayor Rotheram has talked about the economic benefits of £90bn coming from the rail link. I don’t know whether that figure is correct but the advantages of connecting our two great cities with a reliable high-speed link are significant.
“We talk about London being a powerhouse, and it is, but Manchester and Liverpool, as well as other locations such as Chester, Warrington and Preston, combine to make one of the biggest conurbations in western Europe.
“For our region to become an economic powerhouse in the north that can rival London’s status, requires significant investment in major infrastructure.
“The cuts to HS2 were disappointing but building the Liverpool to Manchester line would be a serious statement of intent and including Liverpool John Lennon Airport in the plans would be vital, in my view.”