The UK economy as a whole is struggling to return business and industry to the strength they enjoyed before the recession. However, some areas are struggling more than others due to a lack of representation and funding attention.
The north of England is one such region that is facing some serious problems and the potential devolution of Scotland could make things even worse, according to a report from think tank IPPR North. Alex Salmond, Scotland's first minister, is leading a campaign to increase Scotland's level of independence. However, in doing so he is increasing competition between Scottish cities and those in the north of England.
While this is partly due to the face that Scotland will have more power to set its own tax rates, it is also due to the northern country's better position in terms of attracting investment, thanks to its support packages and resources with are far in excess of those available to the north of England's Local Enterprise Partnerships.
Anyone considering buying a business, especially one that is struggling financially and facing administration, would do well to pay attention to the kinds and amount of support on offer.
Scotland has the ability to “speak with one voice” through Mr Salmond's position as first minister, meaning that there is a better chance of fighting for the local economy. The north of England, meanwhile, has no such representation at Westminster and the disparity between the two regions is only likely to worse if Scotland wins its independence.
IPPR warned that small targeted tax cuts in Scotland, such as reductions in air passenger duty, could all add up to tempt business away from cities like Newcastle upon Tyne in the future. English representatives from the area have argued that they should have better national representation to counter balance this.
The old adage 'location location location' is as true when buying a business as when buying a home so be sure you look at the benefits of opening in different areas when you first come to assess your choices.
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