Big Question: September ’25

Pamela Petty, director at Ebac

The Government’s first year in office has highlighted the difficulty of aligning bold international trade ambitions with domestic economic pressures.

For the North East business community to thrive, its goals must reflect national economic priorities, which chiefly centre around building a stronger, more self-sufficient economy that supports opportunity, job creation and sustainable growth.

While progress has been made in skills development, digital inclusion and infrastructure planning, the fundamentals remain: we cannot fund opportunity without a healthy economy.

A key priority must be redressing the UK’s chronic trade imbalance.

This isn’t just about boosting exports; we must also reduce unnecessary imports by supporting domestic manufacturing and services through targeted subsidies or procurement strategies that favour UK- based providers.

The North East has a clear opportunity to lead in low-carbon innovation, skills and advanced manufacturing.

But this must be British-owned growth, retaining wealth in the region and reinvesting it in people and communities.

Foreign direct investment has a role to play, but not at the expense of long-term economic sovereignty.

The Government must also stop pitting regions against each other for funding or business; a collaborative, UK-wide strategy will deliver far greater economic value.

Above all, the focus must shift from short-term wins to building an economy capable of sustaining the outcomes we all want: education reform, better housing and secure, meaningful employment.

Angela Carney, managing director at Carney Consultancy

At a time when so many sectors say they have a skills shortage, we seem to have two main pressing concerns.

The number of people in the 55 to 67 age group is far greater than the number of Gen Alpha and Gen Zs available for work.

So, at a time when companies should be hiring to ensure future generations are trained, there is a lack of work opportunities for young people.

Meanwhile, a recent article revealed 37 per cent of Gen Z have considered leaving their jobs, with 40 per cent citing concerns over mental health.

The Government needs to put more in place to help with mental health and wellbeing, as this is having a significant impact on a large percentage of the population, yet mental health services within the NHS are already oversubscribed with, in many cases, 12-month waiting lists.

Although all employers could do more, by offering employees access to the free support of counsellors and therapists, the Government could acknowledge this growing area of concern.

If we continue to ignore worries around a lack of skills, the gap will only become wider, and although artificial intelligence will replace jobs, it won’t fill the whole gap.

Furthermore, many companies seem to have put a freeze on recruiting due to the increase in national insurance.

So, if companies are not bringing through the next generation and actively trying to grow, what is the Government’s strategy for long-term sustainability?

Nick Gholkar, executive partner at Ward Hadaway

The Government’s first year has unfolded against a backdrop of economic turbulence and international uncertainty, which has inevitably shaped its domestic agenda.

For the North East, the focus now must be on working constructively to capitalise on the opportunities and comparative advantages we have as a region.

There have already been several encouraging developments – commitments to investment in infrastructure, the integration of the bus network and longer-term projects like the Metro extension and airport expansion.

These are critical enablers of development and help create the conditions for inward investment.

The Government’s priority should be ensuring funding is directed toward projects with broad regional impact.

Support for developments such as the Gateshead Quays conference centre, the Blyth data centre campus, transport and other infrastructure can drive growth across the leisure, retail and green sectors, while reinforcing the region’s strengths in renewable energy and new technologies.

This needs to be managed alongside environmental responsibilities and delivered through strong public and private sector collaboration.

We’re focused on enabling our clients across all sectors to contribute towards this strategy and bolster economic activity within our great region.

We need to move forward with positivity, and shout loudly about why we should be top of the priority list.

By doing so, we can help ensure the North East is seen as a region ready to deliver lasting impact.

Dr Sam Whitehouse, chief executive of LightOx

The Government’s first year has been a step back for the life sciences sector – ambitious on paper, but underwhelming in practice.

While the Life Sciences Sector Plan boasts £2 billion in funding and bold goals to make the UK a global leader by 2035, the reality for North East companies is familiar: underinvestment, policy inconsistency and a widening North-South divide.

Coupled with inaction from grant bodies, many firms have been unable to leverage innovation grants against private finance.

This leaves UK companies at a disadvantage to overseas peers, which benefit from greater support and, as a result, attract more investment.

Despite strong pharma growth in the North East over the past five years, 2025 has seen a sharp drop in health-related innovation funding compared to London and the South East.

Tax policy has added insult to injury. The recent research and development tax relief changes make the UK uncompetitive compared to countries like France and Australia.

If the Government wants to be taken seriously, it must start recognising life sciences as a strategic asset. That means:

• Fixing the funding imbalance with targeted investment from British Business Bank
• Reforming research and development tax relief to reflect global collaboration
• Creating a dedicated North East life sciences investment office to support scale-ups
• Ensuring NHS procurement reforms reach regional SMEs

Until then, ambition will continue to outpace action.