Mandelson pledges regional revival
BUSINESS Secretary Lord Mandelson was today setting out his vision for the future renaissance of regional economies, built on private-sector investment.
In a keynote speech at Manchester University he acknowledges that the UK economy became too reliant on financial services in the past 25 years, and now needs to redress this balance by investing in “advanced manufacturing, sophisticated services, creative industries and biosciences.”
He says there has already been a renaissance of regional confidence – driven by public sector investment – but the next decade will be “testing” and cities need to “turn their regeneration into something stronger and sustainable.”
Lord Mandelson – who is sure to play a pivoptal role in Labour’s strategy in the forthcoming general election – says the UK needs a massive programme of infrastructure renewal to ensure the economy remains globally competitive.
With public finances under pressure he argues that in future government will be more about facilitating investment than picking up the bill.
“The Government needs to make sure that the planning system, low carbon policy and investment incentives and regulatory framework are all pulling in the same direction.”
“Money to build this infrastructure cannot come solely, or eben chiefly from the public purse,” he warns.
He says the future is not about substituting government spending or action for private enterprise, but about “using strategic government to unlock the power of private investment to keep transforming our regional economies.”
“This union of vision and pragmatism, of public strengths and private enterprise is, in my view, the key to rebuilding and advancing Britain’s future.
“It’s a future in which we all have a stake, and from which none of us – and no region of our country – should be left out. We all need to show the will to achieve it.
“Britain’s regional economies, like the economy as a whole, are utterly dependent on sound infrastructure. This is a vital enabler of our economic recovery and future growth – and regenerating our infrastructure as a growth plan in its own right.”
Lord Mandelson will later be visiting MediaCity, the £1bn development which will house several key BBC departments from next year.
He says: “The BBC’s move to Salford Quays is emblematic of the new faith North’s future.”
He also praised Manchester as “one of the powerhouses” of the UK economy and says the future challenge for the city – and other regional centres – is to develope new technologies based on the knowledge economy.
