Think tank says Northern Powerhouse is hampered by austerity
A prominent think tank urged more investment and devolution for northern England, five years on from the launch of the Government’s Northern Powerhouse initiative.
Researchers at IPPR North warned the Government’s policy of austerity has “undermined” the economy of the North.
They highlighted successes, including the creation of Transport for the North which has brought forward a £70 billion investment plan.
But an IPPR spokesman stressed: “The Northern Powerhouse has proceeded against a backdrop of austerity.
“Since 2009/10 the North has seen a £3.6 billion cut in public spending, while the South East and the South West saw a £4.7 billion rise, in real terms.
“Since 2014, public sector employment fell by 2.8%, compared to 1.2% in London, 1.6% in the South West, and 1.7% in the South East.
“In the same time, transport spending rose by more than twice as much per person in London (£330 per person) as in the North (£149 per person), in real terms.
“And total foreign direct investment jobs fell by 23.7% between 2015/16 and 2017/18 in the North, while falling by 21.5% nationally over the period.
“Despite this, the Northern economy has shown signs of improvement and these are the foundations upon which a new phase of the Northern Powerhouse, led by and for the North, could be delivered.
“Since 2014: Economic growth was marginally higher in the North than the national average – growing by 10.7% between 2014 and 2017; this compares to 10.6% for the UK as a whole; and 9.7% for the UK excluding London.”
Sarah Longlands, Director of IPPR North, said: “The Northern Powerhouse agenda has helped build momentum around the need to address the UK’s unacceptable regional inequalities.
“But it’s clear from our independent analysis that it has failed to tackle fundamental challenges like child poverty, insecure work and poor health.
“A better North is possible but it requires a proper long-term, resourced plan for change.”
Northern Powerhouse Minister Jake Berry MP responded: “Five years on, the Northern Powerhouse remains a priority for the Government and is delivering results for people across the North with a record number of people in work and nearly 200,000 more businesses today than in 2010.
“We’re investing over £13bn in improving transport – more than any Government in history – and, with almost half the region represented by five strong metro Mayors with new powers to stimulate job creation, improve skills, build homes and make it easier to travel, we’re keeping our promise for more decisions in the North to be made by the North.”
Councillor Susan Hinchcliffe, Chair of the West Yorkshire Combined Authority and Leader of Bradford Council, said: “While positive steps have been taken to address the economic challenges facing the North, this analysis underlines the need to dramatically increase the pace and scale of investment if we are to truly rebalance the economy and raise living standards for all our communities.
“As a starting point, the Government must recommit to delivering HS2 in full and fund Northern Powerhouse Rail, with a line going through Bradford city centre.”
Roger Marsh, Chair of the NP11 Board and Leeds City Region Enterprise Partnership, said: “This analysis rightly points out the scale of the challenge we face to reverse the impacts of decades of under investment but we also need to focus on the scale of the opportunity the North presents to UK plc.
“By investing in better transport and digital infrastructure, skills and support for business across the North, we can create exceptional growth which delivers a higher standard of living for our communities and a positive contribution to the UK economy as a whole.”
