The jury is still out on economic drive

Julia Bradley

So what impact has the Northern Powerhouse had since its creation five years ago?  There are mixed views.

Julia Bradley of Peel Ports says the jury is out on the Northern Powerhouse having any real impact in terms of inward investment, job creation and balancing the economy.

She said: “The initiative had a good profile for a while but it hasn’t yet gained the momentum we expected.

“The progress so far on rebalancing the economy has largely been through the efforts and investments of private companies such as ourselves; for example with the Liverpool2 terminal.

“As far as we can tell the Northern Powerhouse project is not high on the political agenda. Brexit has completely dominated the political landscape for years now, with regional issues, public policy and industrial strategy all seemingly on hold.”

She adds: “To maximise its potential, the government needs to give the Northern Powerhouse a clear purpose, good governance, decision-making authority and strong credible leadership.”

Henry Brooks, managing director of Cheshire-based Tatton Group, takes a different view.

He said: “The Northern Powerhouse has boosted confidence in the North.

And he added: “We are seeing the region take ownership, it is no longer a Number 10 or Number 11 project led by central government.”

Brooks says there is a lot happening on the ground with the private and public sectors, along with universities and the third sector, “really embracing it.”
Andrew Herring, partner at law firm Squire Patton Boggs, agrees that the project has given the North confidence.

He said: “In terms of creating positive brand with one view of the North, it has done that.

“Has it become an institutional thing? I don’t think it has and I don’t think it needs to be.

“There are enough institutions in the North already, it is a question of getting them all pointed in the right direction. I think it has helped with that.

“The reality at the moment is that the domestic policy agenda is difficult to say the least.”

Chris Hearld, chairman of KPMG’s Northern Region and senior partner in its Leeds office, says the Northern Powerhouse is “still massively relevant” and that its drive to rebalance the economy has not changed.

He also points to the Northern Powerhouse brand and its impact overseas. However, he added: “Without doubt there has been a massive loss of momentum, driven primarily off the back of Brexit.”

Hearld believes that loss of momentum has increased the amount of scepticism surrounding the project and more commitment is now needed to bring it to life.

Amid the political uncertainty he says the towns and cities of the North can’t wait for central government, distracted by national priorities, to solve their problems – they have to “get on the front foot”.

He said: “There are things we can do to influence and at local level to make a difference.”

The CBI’s North West regional director Damian Waters says: “The Northern Powerhouse is a key part of the UK’s economy, adding over £339bn to the economy a year, yet its productivity continues to lag behind other parts of the country.”

And he welcomed the added impetus to Jake Berry’s role. “It is an important first step towards taking a much more joined up approach across departments and embedding the Industrial Strategy in all parts of the government’s work.

“Continuing to work closely with businesses and stakeholders across the North will be key for the minister in order to promote the important work of this region nationally and internationally, particularly considering the leading role the region will play in addressing the Grand Challenges as set out within the Industrial Strategy, and the existing and future sector strengths of this region.”

Close