CBI leader calls for Yorkshire devolution deal to boost global competitiveness

An agreement between Westminster and Yorkshire could deliver the biggest devolution package seen yet and is imperative if the region is to create the scale it needs to compete effectively in the global marketplace, the CBI’s Director-General has said.

Speaking with TheBusinessDesk.com ahead of the CBI annual dinner yesterday, Carolyn Fairburn, director-general of the CBI, said: “Companies have geographical routes, like people do. There is a lot of hard-edged business out there and they need to be competing on a global scale.

“The competition for Leeds or Sheffield, for example, isn’t Manchester or London. It’s global; Chengdu, Munich, Bilbao. Unless we are thinking like that, then our great cities won’t be able to compete effectively.

“It’s about power and scale and collaboration. There needs to be a devolution deal for Yorkshire to realise that potential. There is real value in the leadership of a region like Yorkshire.”

She added that it was right for businesses to be involved in how a devolution deal was to be mapped out  because this would lead to greater prosperity. Despite uncertain times, she said that Yorkshire businesses “had shown true grit and determination.”

Fairburn spent time with businesses yesterday, ahead of the dinner held at the University of Leeds. She said she was impressed to hear that overall, companies had spent 16% more on research and development this year than last.

“The optimism about Yorkshire and the sense of opportunity is huge.  It’s exciting to hear about that R&D spend. Great investment leads to great competitiveness,” she added.

Of connectivity in the region and beyond, Fairburn said the CBI was supportive of HS2 but also improvements to transport across the region. She said there was a “magic 40 minutes” that needed to be achieved for companies to mobilise staff between offices in the region and also attract the right people to the fantastic jobs.

She added that manufacturing output being at a three-year high and that the economy is worth £110bn per year were “striking figures.”

Fairburn said that the region was leading the way with tech and life sciences and that Yorkshire was the ‘Silicon Valley’ of the UK. She added that companies undertaking this work were leading the way in attracting further investment because they showed scale and ambition.

It was also good to see companies becoming ‘more human’ in their approach too, she added. “It’s great when I hear about the impact business make on people’s lives, rather than corporate speak.  There are many tech and pharmaceutical companies making people’s lives better and the opportunity to talk in this way about teh contribution companies make t the economy will inspire young people – the next generation.”

What’s concerning businesses at the moment? Fairburn said aside from devolution and brexit, the skills gap was a big issue. “How are we going to get the coders, the investors of the future? We need to start as early as possible,” she added. Today, she and other colleagues from the CBI and member businesses will be at a school in the region to do exactly that.

At the Annual Dinner last night, held at the University of Leeds and sponsored by Northern Powergrid, NatWest and CNG, Fairburn also called for an industrial strategy that empowers the Northern Powerhouse and shines a spotlight on Yorkshire’s rapidly growing world-class tech sector.

The evening also announced the new Chair for CBI Yorkshire and Humber as Richard Flint – CEO of Sky Betting & Gaming. He takes over from Phil Jones, President and Chief Executive of Northern Powergrid. Flint has been with Sky Bet for 15 years, and has overseen the company’s growth in that time. He was responsible for bringing it to Leeds, setting up its Software Academy and opening an office in Sheffield. The company now employs over 1,000 people in both cities.

In her address to the dinner last night, Fairburn said: “I think it’s fair to say there is concern in the business community that much of the region has fallen behind the pace. In particular, that the lack of a deal for parts of Yorkshire risks creating gaps in the Northern Powerhouse. We know that what matters for firms has not changed – business wants devolution to succeed.”

Commenting on his appointment, Richard Flint, Chair of CBI Yorkshire and Humber Council, said: “I’m honoured and delighted to succeed Phil as the new chair of the CBI’s Yorkshire and Humber Council.

“At this critical time for the country and our region, the CBI will be striving for the best Brexit outcome for Yorkshire and the UK. It’s also vital that businesses and our members have a seat at the table as new devolution deals are discussed.

“I very much look forward to working alongside Beckie Hart and colleagues to support Yorkshire’s businesses as they go from strength to strength.”