Business Must Be ‘at Heart’ of Burnham’s Devolution Plans, Warns BCC

The latest push for devolution in the UK’s budget plans has sparked a renewed debate about the role of business in driving growth and investment at the local level. As Andy Burnham and John Healey prepare to unveil their first autumn Budget, the British Chambers of Commerce (BCC) is urging the Government to put businesses at the heart of the devolution process.

The BCC’s call to action is not surprising given its long-standing advocacy for business-friendly policies. However, what is noteworthy is the emphasis on making devolution a “powerful engine for local and nationwide growth.” This rhetoric suggests that the BCC sees devolution as a means to an end, rather than an end in itself.

The BCC points to dismal investment numbers from its survey of 5,000 firms. Only 17% of companies were planning to increase investment in the second quarter of 2026, a post-pandemic low. This statistic serves as a stark reminder that devolution must be accompanied by tangible economic benefits.

To achieve this, the BCC proposes completing the devolution plan by the end of the 2027-28 financial year. This would give local leaders more control over funding and enable them to accelerate growth in their areas. However, this timeline raises questions about the pace of decentralization. Can the Government really transfer power out of Whitehall quickly enough to make a meaningful impact?

The real test of devolution lies not in its speed or scope but in its ability to empower local communities. The BCC’s emphasis on making business the “heart” of the process may be misplaced, as it risks prioritizing economic growth over social and environmental considerations.

In an era where regional disparities are growing, can we truly afford to put business interests above all else? The survey results also highlight a broader issue: that businesses are increasingly risk-averse in the face of economic uncertainty. Only 17% of companies were planning to increase investment, but what does this say about the state of our economy? Is it merely a reflection of a global slowdown or is there something more fundamental at play?

As the Budget approaches, we must consider not just the business case for devolution but also its potential social and environmental implications. Can decentralization be used as a tool to drive growth while also addressing regional disparities and promoting sustainability? The answer lies in creating a more nuanced approach that balances competing interests.

The BCC’s call to action is timely, but it must be tempered with caution. Devolution is not a panacea for all economic woes; rather, it is a means to create a more equitable and sustainable future. As we move forward, let us keep our eyes on the prize: true decentralization that benefits not just business interests but also local communities and the environment.

The BCC’s emphasis on economic growth raises questions about the distribution of benefits. Will devolution truly give local areas a direct share in the rewards of growth? Or will it merely perpetuate existing regional disparities?

The survey results highlight the limitations of a business-centric approach to devolution. Can we truly rely on companies to drive investment and growth if they are not convinced that devolution is in their best interests? The answer lies in creating a more inclusive approach that balances economic, social, and environmental considerations.

The UK’s experience with devolution is far from unique. Other countries, such as Spain and Italy, have also attempted to decentralize power while prioritizing economic growth. The results have been mixed, to say the least. In some regions, devolution has led to a proliferation of bureaucratic hurdles that stifle innovation; in others, it has created a power vacuum that local leaders struggle to fill.

As we navigate our own path towards devolution, let us learn from these cautionary tales. Can we truly expect businesses to drive growth and investment if they are not accompanied by a broader vision for regional development? The answer lies in creating a more nuanced approach that balances competing interests.

A more realistic approach would be to focus on creating a roadmap to success that prioritizes capacity-building and regional development. This involves investing in local infrastructure, education, and innovation hubs, as well as providing support for community-led initiatives.

As the Budget approaches, we must consider not just the business case for devolution but also its potential social and environmental implications. Can decentralization be used as a tool to drive growth while also addressing regional disparities and promoting sustainability? The answer lies in creating a more nuanced approach that balances competing interests.

The BCC’s call to action is timely, but it must be tempered with caution. Devolution is not a panacea for all economic woes; rather, it is a means to create a more equitable and sustainable future. As we move forward, let us keep our eyes on the prize: true decentralization that benefits not just business interests but also local communities and the environment.

The devolution debate is far from over. As we move towards a more decentralized future, let us be mindful of the complexities involved. The real test of success lies not in putting businesses at the heart of the process but in creating a more inclusive approach that balances economic, social, and environmental considerations.