HAVING been subjected to the two worst Prime Ministers in modern times, many of us entered 2025 reasonably optimistic.
It felt like there was no other way than up and the new government was saying all the right things. This included an industrial strategy – standard planning for the likes of Japan and Germany, however strangely alien to the British establishment. Crucially, it also had economic growth as the overarching objective – generating additional value would help repair the public services that were unquestionably broken. That was certainly something that Warrington commerce could get behind.
The Industrial Strategy was highlighted in the Spring Statement on the 26th March, much to the delight of trade bodies who had been campaigning for one since 2010. Like most of us though, they weren’t prepared for the main course – National Living/Minimum Wage up by 18% for some age groups. Employer National Insurance contributions were also on the march to 15% from 13.8%. The British Retail Consortium estimated it would cost their members up to £7bn a year and there were plenty of local companies telling us that it would curtail their own investment. At the Warrington Business Conference, Lymm Truck Wash assertively outlined to our local MPs that their £2m investment intentions were not being matched by government.
“Liberation Day” arrived in April when the Leader of the Free World decided that the USA was being taken advantage of by the likes of Lesotho and the Heard & McDonald Islands. Jaguar Land Rover were hit by a 25% export tariff, directly impacting their supply chain in Warrington and across the UK. The Prime Minister had to attend court with King trump and his courtiers to eventually secure a less-bad-than-good trade deal, still with a 10% penalty.
The year didn’t really improve economically after that. Growth remained underwhelmingly modest at around 1.5%; productivity limped to 1.1%; inflation went over target at 3.6% and unemployment rose to 5%. Most businesses went into the Autumn Budget with everything crossed, only to see the Living Wage rise once again. However, there were a few welcome developments, with 750,000 retailers benefitting from lower business rates. There was also a strong focus on nuclear – great for the cluster headquartered at Birchwood Park. However, Make UK called it a “scatter gun” Budget and it’s difficult to disagree.
So again we head towards 2027 hoping for the best and waiting for the growth to materialise. Encouragingly, businesses across Warrington continue to innovate and expand, regardless of national government policy. At the blue chip end, Amentum will add to their local headcount from their contracts at Hinkley Point, Sizewell C and the wider defence sector. At the SME level, Barrow Electrical are inspiring others to export, with mayor business won from Irish based Boyle Sports. The iconic (yet unattractive) Unilever building will be demolished next year as the regeneration of Bank Quay kicks off ahead of Northern Powerhouse Rail, devolution and an elected mayor. So we’ll make our own luck, find those opportunities and ensure that Warrington remains one of the strongest economies in the North of England.
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