Comment from Paul Shields, Partner and Head of the Newcastle Office at Johnston Carmichael Chartered Accountants:
“The Chancellor’s announcement of £2.2 billion in extra defence funding is a welcome opportunity for manufacturing and engineering businesses here in the North East, following the planned increases in National Living Wage and Employers National Insurance which take effect from April. Our region has a rich history of innovation in these sectors, and with 10% of the defence equipment budget going towards new technologies, there’s real potential for local businesses to benefit.
We have some incredible manufacturing specialists in the North East with the skills and expertise to play a role in this – but making sure they can actually access these opportunities is crucial. The government’s plans to make defence contracts more accessible for smaller businesses are a step in the right direction, but businesses will need the right support to navigate the process and scale up to meet demand.
This investment could be a real boost for the North East, and we want to see as many local businesses as possible in the best position to take advantage of it.”