Our North East pre-Budget Roundtable

To pull the economic debate out of the Westminster and City of London bubble, the Jobs Foundation recently gathered our North East Business Council for a policy roundtable. We sat down with regional industry leaders at the Port of Middlesbrough on Thursday 17th September, to pinpoint exactly what is holding local growth back, and how to fix it.

Unsurprisingly, the sheer cost of hiring dominated the conversation. Between minimum wage increases and higher employer National Insurance contributions, taking a chance on unproven young talent has become unaffordable to many. When you factor in the looming changes from the Employment Rights Act, employers are understandably nervous. While there is broad support for protecting new workers, businesses stressed the need for secure probationary or traineeship periods. Without these safeguards, the threat of immediate tribunal claims makes companies reluctant to hire entry-level candidates who simply need time to learn the ropes.

But not every barrier requires a massive funding package to solve. Pointing to severe staff shortages in logistics, the council suggested a completely free fix; restoring the pre-2000 rule that allowed people to drive 7.5-tonne vehicles on a standard car licence. This simple regulatory rollback would instantly create accessible, non-academic jobs. Beyond that, eager young people are frequently priced out of getting to work by sky-high commercial vehicle insurance premiums and overly complex motorcycle licensing rules. This becomes a particularly massive issue in areas lacking reliable public transport.

The persistent disconnect between the classroom and the workplace remains a major hurdle. Employers flagged a serious lack of professional careers advice in schools, noting a glaring mismatch between what local businesses need and what colleges are equipped to provide. A suggested idea is to introduce STEM and technical engagement at the primary school level and completely overhaul outdated careers guidance.

The Apprenticeship Levy also took its fair share of criticism for being far too rigid. Instead of being locked into multi-year schemes, employers want the flexibility to fund shorter, targeted upskilling courses. They also proposed a regional matching system that would allow large corporations to pass their unspent levy funds down the supply chain to local SMEs. On the welfare front, benefit cliff-edges continue to disincentivise taking entry-level roles. To counter this, employers strongly backed a targeted, one-year National Insurance holiday for hiring NEETs and long-term welfare recipients, as well as a broader, national reform of welfare. The NI holiday would be mirroring the current military veterans scheme, this would help offset the initial costs of training those who need extra support to enter the workforce.

Touching on the realities of heavy industry, employers warned that blanket domestic steel tariffs are actually penalising downstream processors, particularly when UK mills cannot supply the required dimensions.