The Northern Powerhouse – five years on

George Osborne

On the eve of the fifth anniversary of the launch of the Northern Powerhouse, leading North West business and civic figures have offered their views on where the initiative stands now.

The then Chancellor, and MP for Tatton, George Osborne, first introduced the idea of a ‘Northern Powerhouse’ on June 23, 2014.

Mr Osborne told an audience at Manchester Museum of Science and Industry that the lack of economic and physical connections between the cities and city regions of the North of England was holding back their growth, with significant implications for the national economy.

In the Chancellor’s own words: “The whole is less than the sum of its parts … so the powerhouse of London dominates more and more.”

Business and civic leaders across the North have mixed views on progress to date.

Lord Jim O’Neill, vice-chair of the Northern Powerhouse Partnership, said: “The Cities Growth Commission that I chaired made the case for what could be achieved by devolution, in particular how the Northern cities would be even greater if they acted together.

“Five years ago, many of those ideas led the then Chancellor George Osborne to launch the Northern Powerhouse, which brought together Labour city regional leaders with a government that I then joined.

“Five years on we have achieved much – in our universities, securing the Royce Institute led in the North and the National Centre for Data in Newcastle; in devolution, with elected mayors across half of the Northern Powerhouse population able to make decisions on skills to taking London-style powers over buses.

“In infrastructure, it is vital that the Government commits to Northern Powerhouse Rail which would have a very positive consequence for the agglomeration concept that underlies the Northern Powerhouse idea and would be the clearest sign of true, fresh central government commitment.

“However, in areas like education there is more to do, and funding even that I myself fought for in government was then after I left the Treasury not used well enough.”

Carl Williams, managing partner of business advisors Grant Thornton in the North West, said: “The business community across the core Northern cities has made great strides working together to tell our story, support the growth of dynamic businesses here, and promote the innovation and enterprise that we all experience every day.

Carl Williams

“People started talking about the Northern Powerhouse for a very good reason – decades of under investment in the North – and if anyone in this part of the world is sceptical about what it can achieve I think they need to ask themselves what they are doing to support the North.

“The UK’s economy does need more North/South balance and the Northern Powerhouse is keeping up the pressure on key structural issues, such as desperately-needed investment in transport infrastructure.”

Wayne Nash, head of office at law firm Shoosmiths Manchester, said: “To progress from having no mayoral devolution back in 2015 to now having metro mayors in Manchester, Liverpool, Sheffield, the Tees Valley and the North of Tyne demonstrates the momentum in the North’s biggest cities to take back greater control of our economy and ensure that we’re navigating on the right track to prosperity.

“As a specialist real estate lawyer I’ve seen first-hand how the Northern Powerhouse brand has helped to secure huge international investment into cities like Manchester and Leeds.

“The pace of property development taking place across the North is extraordinary, with a continuous pipeline of projects being granted planning permission to feed this construction boom.

Wayne Nash

“Collaboration remains at the heart of the Northern Powerhouse agenda and if we’re truly to put our vision into practice we need to work together.

“The North boasts world-leading strengths in advanced manufacturing, healthcare, construction and digital and creative industries. Pooling together our collective strengths will be critical to unlocking global opportunities for the region.”

He added: “Connectivity is key, not just in the North but with the rest of the UK.

“One of the biggest challenges will be securing greater investment in transport infrastructure, with projects such as HS2 and Northern Powerhouse Rail promising to supply the North with some of the fastest railway lines in the world.

“Although still some way off being a reality, these investments will transform the North into one of the best connected regions in the UK and open up unparalleled opportunities for investment.”

Barry Roberts, managing director for Morgan Sindall Construction in the North West, said: “There can be no doubt that the construction sector in our region is in a much better place since the Northern Powerhouse was launched, which can be witnessed by the huge number of cranes visible in our city centres, as well as the increased number of people contributing to our economy by choosing to live and work here.

Barry Roberts

“As the Northern Powerhouse passes the five year mark, it’s important that businesses in the region focus our efforts in ensuring the growth is sustained, resulting in improved connectivity amongst our cities and achieves a stronger economy for communities throughout the North for decades to come.”

However, one director believes  that the Northern Powerhouse initiative has, to some extent, run out of steam since George Osborne’s departure from government, and needs re-booting.

James Heather, development director at U+I, the regeneration company behind Manchester’s £1bn+ Mayfield development, said: “The Northern Powerhouse has unquestionably galvanised investment in Northern cities over the last five years – the number of cranes on the Manchester skyline proves the point – and I believe it has also helped regional cities to collaborate better to lobby for the much-needed improvements in our transport infrastructure.

James Heather

“While the concept is still alive, I think it has lost momentum since George Osborne’s departure from government.

“Brexit has dominated the Westminster agenda for three years now, and rather than wait for the Government to refocus, it’s up to business and civic leaders in the North to carry the Powerhouse forward by setting and delivering on its own agenda, while at the same time continuing to make the case for investment in milestone projects like HS2 and Northern Powerhouse Rail, which will have a transformative impact on the North.”

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