The Northern Powerhouse – what is phase two?

THE NORTHERN Powerhouse is about more than devolution deals and transport links – “phase two” will focus on the north’s skills gap.

That’s according to Treasury minister Lord O’Neill who said that a second phase will address the interplay between education, skills and business.

“If we cannot change the skills and attainment of our young people it still won’t work,” the Tory peer said.

Speaking at the Northern Powerhouse conference in Manchester he insisted that while the Government does not have a blueprint for the Northern Powerhouse it is about “empowering large numbers of people to explore better economic opportunities.”

The introduction of smart travel cards, similar to London’s Oyster card, is central to that aim – since Oyster has been introduced in London, the movement of people has increased by 20%.

“Transport for the North has already been given funding to start working on it [smart travel] as a defined project,” he said.

Rural and shire devolution deals will also be looked at and O’Neill made strong hints that a Cumbrian deal – in which he is involved in current negotiations – will be the first to be agreed in the coming weeks.

“The early stage of the Northern Powerhouse is about giving devolved powers to certainly all the major cities but also – and we hope to have some progress on this quite soon – some of the rural based areas too,” he said.

When asked whether one Government could successfully implement such a long-term macroeconomic policy, Mr O’Neill said that was why it was so important for the agenda to be led from the regions.

He said: “This bottom up pan northern powerhouse macroeconomic offering is being driven completely by northern council leaders and the LEPs, involving business. I attend their discussions but I am really careful to not say this is what I think you should be doing.

“One of the reasons these things haven’t lived on is because they have been little hobbies of whoever it was in Government. If the depth of it is coming from the bottom up – no incoming government is going to dare try and stop it if it has got momentum.”

“If in three years time there are three Chinese airlines flying to Manchester airport, what central government person would say ‘nah not going to bother with that’?”

For more information on the UK Northern Powerhouse International Conference and Exhibition (25-26 February 2016) visit www.uk-northern-powerhouse.co.uk . Follow on Twitter @UKNorthernPower.