THE Government will build thousands more affordable new homes, invest in roads and create one million jobs over the next five years, Chancellor George Osborne pledged in the Autumn Statement.
A £400m Northern Powerhouse investment fund will be created to help small businesses to grow, while £5m will also go to Manchester museum to create a new South Asia gallery in partnership with the British Museum, and £150m to help make Oyster card -style ticketing a reality across the whole of the North.
There was a promise too to fund three million more apprentices to tackle skills gaps in the economy, while financial support for key sectors such as aerospace and automotive were also maintained.
Further devolved powers and regional transport spending were pledged too – but there was nothing as meaty as the £11bn the Chancellor announced for transport in London.
The Chancellor’s suprising U-turn on tax credits will grab most of the headlines, but from a business perspective there were few rabbits produced from hats.
He said: “Transport capital spending will increase by 50% to a total of £61bn – the biggest increase in a generation. That funds the largest road investment programme since the 1970s. For we are the builders.
“It means the construction of HS2 to link the Northern Powerhouse to the South can begin. The electrification of lines like the Trans-Pennine, Midland Main Line and Great Western can go ahead.”
He added: “We’ll fund our new Transport for the North to get it up and running. London will get an £11bn investment in its transport infrastructure.”
Karen Campbell-Williams, North West head of tax at accountants Grant Thornton said: “Northern Powerhouse sceptics in London will probably have enjoyed the fact it was barely mentioned in comparison to prior statements – perhaps twice. Once again, not much detail, it was all very high level.
“It’s disappointing that we heard another somewhat woolly commitment to transport in the North and then in the next breath £11bn for London.”
Mike Perls, chair of the IoD in the North West, said: “The business community is clear about the need for more concrete actions in place to support the rhetoric behind the Northern Powerhouse and it was good to see some positive steps.
“The £400m Northern Powerhouse fund to help small businesses looks to be a good development alongside the confirmation of further devolution agreements and transport plans such as the so called Oyster card.”
Martin Venning, co-organiser of the UK Northern Powerhouse International Conference & Exhibition, which takes place in Manchester in February 2016, was however much more upbeat about the Government’s commitment to the north.
He said: “The Autumn Statement provides welcome focus on the Northern Powerhouse and the pivotal role it is playing in powering the UK’s growth whilst creating skilled jobs in the North.
“Our economy has for too long been dominated by London and the South East of England and George Osborne’s reiteration of support for the electrification of the TransPennine railway, £20m in funding for Transport for the North and investment in HS3 between Manchester and Leeds will help better connect the 15 million people who live in the north of England”.
