The British Chambers of Commerce (BCC) has called on Prime Minister Andy Burnham to place businesses “at the heart” of his devolution plans when he and Chancellor John Healey publish their first autumn Budget next month, arguing firms are essential to deliver growth, investment and higher living standards across the UK.
The plea comes as the BCC highlighted worrying investment intentions from firms: a survey of 5,000 companies showed that in the second quarter of 2026 only 17% were planning to increase investment in the coming months — a post-pandemic low, the organisation said. The finding underlines the challenge for ministers intent on shifting powers out of Whitehall while trying to nudge private spending back towards higher levels.
“Business want and need devolution to be a powerful engine for local and nationwide growth... They are ready to be at the heart of the journey ahead.”
Shevaun Haviland, director general of the BCC, argued devolution could be “a powerful driver of economic growth” but stressed this would only hold if business interests were central to how powers and funding are distributed. The group wants a clear timetable and for local leaders to gain control over funding to accelerate growth and improve living standards in their areas.
What the BCC is asking for
The BCC set out specific expectations for the Budget and the government’s devolution programme, urging ministers to:
- Complete the devolution plan by the end of the 2027-28 financial year;
- Give local leaders more authority over funding to support investment and jobs;
- Provide local areas with a direct share in the rewards of growth before the end of this Parliament.
The organisation framed these steps as practical ways to make it easier for companies to invest, recruit, trade and grow — the BCC’s stated test for whether devolution is working.
Context and consequences for firms, wages and prices
The timing of the BCC intervention matters. Ministers are preparing a roadmap to fiscal devolution, which the Chancellor has committed to set out at the Budget, and the administration says difficult choices lie ahead to keep the economy on course. For businesses, devolved powers promise quicker decisions on local infrastructure, training and support that could lower costs and raise productivity — with potential knock-on benefits for wages over time.
But the BCC’s survey result — only 17% of firms planning to raise investment — is a warning signal. Lower private investment can weigh on future productivity and limit the scope for higher pay or for firms to absorb cost pressures without passing them onto consumers. If devolution is to change that dynamic, the mechanism must demonstrably remove obstacles to investment rather than simply shift responsibilities between Whitehall and local authorities.
The BCC’s push for a direct share of growth returns to local areas also feeds into the wider fiscal debate: handing incentives to local government to foster private investment could encourage place-based competition for jobs and capital, but it risks uneven outcomes between regions unless national frameworks and accountability are clearly designed.
| Item | Detail |
|---|---|
| Survey sample | 5,000 firms (Q2 2026) |
| Firms planning increased investment | 17% (post-pandemic low) |
| Devolution completion target (BCC) | End of 2027-28 financial year |
For the Chancellor and Prime Minister, the BCC intervention raises a pragmatic challenge: to convert devolution rhetoric into policy sequencing and funding arrangements that demonstrably lower barriers for business investment. Without that, devolution risks becoming a transfer of responsibilities rather than a catalyst for growth.
As ministers frame the Budget, markets, companies and workers will be watching whether the promised fiscal devolution includes tangible measures to reduce the cost and uncertainty of investment — the essential ingredients, the BCC argues, for boosting jobs, wages and living standards across the country.
