Support offered to thousands of firms in North Yorkshire to cope with economic challenges

North Yorkshire has a wide-ranging local economy with more than 32,000 small and medium-sized enterprises forming the vast majority of businesses.

But the highest rate of inflation since the early 1980s has placed immense pressure on businesses which have also had to endure uncertainty caused by the Covid-19 crisis and the repeated lockdowns enforced to prevent the spread of coronavirus.

Support for businesses will, however, be a key role for the new North Yorkshire Council, which will launch in just under two weeks on April 1 and is being seen as a defining opportunity to co-ordinate economic development in the county.

North Yorkshire County Council’s executive member for open to business, Cllr Derek Bastiman, said: “The thousands of small and medium-sized businesses which operate across North Yorkshire are vital for the county’s economic prosperity.

“There have been unprecedented challenges in recent years which have placed huge pressures on all businesses, whether that be down to the Covid-19 pandemic or the rising inflation which everyone has seen during the cost of living crisis.

“The new council will, however, provide us with an opportunity to bring together the experience, expertise and good practice that already exists across all the authorities in North Yorkshire.

"This will mean that there will be one point of contact for businesses to access support for skills, training, recruitment and access to funding, which will be of a huge benefit at such a challenging time economically.”

The new council is developing a clear economic growth strategy while consulting with businesses and stakeholders across North Yorkshire. It will also help achieve an ambition for York and North Yorkshire to become the country’s first carbon negative region, meaning more carbon dioxide emissions would be removed from the atmosphere than are emitted.

The strategy will support enterprise, innovation and investment, and will focus on new and emerging industries, such as green technologies, cyber and digital, finance and life sciences as well as more traditional sectors such as tourism, food and drink manufacturing and engineering.

The council will work alongside the county’s six MPs to lobby the Government for the best possible opportunities for businesses, ensuring that Ministers understand the issues that affect the county’s economy.

Devolution is set to provide more local decision-making powers and millions of pounds in extra funding from the Government, and among the main benefits are due to be new and better paid jobs and increased skills and training.

The Government is currently considering plans to establish a mayoral combined authority for York and North Yorkshire later this year, and an influential mayor, who will act as a figurehead for the region, is then set to be elected in May 2024.

The new council will continue to work in close partnership with the York & North Yorkshire Local Enterprise Partnership (LEP), as well as City of York Council, as they prepare for the proposed mayoral combined authority.

Benefits already realised through a proposed devolution deal announced by the Government last year are £12.9 million for housing through the Brownfield Housing Fund and £7 million for low-carbon projects via the Net Zero Fund, both of which have been launched in York and North Yorkshire.

The chair of the LEP, Helen Simpson OBE, said: “We’re excited to continue this collaborative working with the new North Yorkshire Council and ensure that business support is easy to access and available across the whole of North Yorkshire.

“The York and North Yorkshire Growth Hub, which is part of the LEP, has worked closely with district and county council colleagues for several years to help provide local support for businesses.

“We’re also committed to building the Invest in York and North Yorkshire inward investment proposition, a partnership initiative designed to attract new business investment into the region.”

Work to support businesses in North Yorkshire has already received national recognition. Hambleton District Council was among 400 authorities in England which entered the first ever local government awards run by the Federation of Small Businesses and was named in October last year as the winner of a national award for the best programme of business support.

The council was recognised for its breadth of work, including providing grants to businesses to take on apprentices and the administration of more than £3.8 million in funding from the Government to support enterprises in the wake of the Covid-19 crisis.

Hambleton District Council’s interim head of service for business and the economy, Sam Swinbank, said: “Having economic development as a key priority has enabled us to develop strong positive working relationships with our businesses and key partners to help us to maximise investment into the area. We are committed to continuing this approach through the new council.”

The Government’s Shared Prosperity Fund has seen £16.9 million allocated for North Yorkshire, with a focus on investment in supporting local businesses, improving skills, and regenerating towns.

And about £40 million in funding from the Government is being used to boost public transport and access in Harrogate, Selby and Skipton with new and improved stations and integrated transport hubs to aid the regeneration of the town centres.

A further £37.3 million in funding from the Government is being used for the Town Deal programmes on the coast.

Town Investment Plans for both Scarborough and Whitby have been developed and projects are being delivered to boost skills and enterprise, cultural activities and digital connectivity, while also improving sustainability and the public’s well-being.

It is hoped the funding will help bring in further investment over the coming years.