State of the Region: Will Enterprise Zones make a difference?
WITH public sector funding being slashed, investment vehicles such as the Regional Growth Fund are also being heralded as a saviour for private sector growth.
TheBusinessDesk.com’s State of the Region survey gives business leaders the chance to voice their views on what impact government initiatives are having on the North West economy.
TheBusinessDesk.com is delighted to be running this milestone project in association with our lead sponsor, law firm DLA Piper, and which is also supported by accountancy group PwC and the CBI.
[FORM: 53]
Kate Creer, partner at DLA Piper Liverpool, said: “Tuesday’s Autumn Statement revealed a bleak forecast for declining growth and rising unemployment. The Office for Budget Responsibility reduced its growth forecast to 0.7% for 2012, down from the 2.5% growth for 2012 predicted in March.
“Yet there was some positive news for the regions as the Chancellor pledged up to £40bn in state-backed loans to small businesses, enhanced backing for UKTI and an additional £1bn for the Regional Growth Fund (RGF) over the term of this Parliament. This represents a significant addition to the £1.4bn that had already been allocated.
“It will be interesting to see how businesses respond. In last year’s survey respondents from the North West felt that they had a clear understanding of the Regional Growth Fund.
“This year, the North West has fared well with the government allocating funds to 43 projects in the region including the Mersey Multimodal Gateway in Halton, Bruntwood’s redevelopment of the Manchester Eye Hospital and Peel’s Ports in Salford.
“Last year, when asked what should be done to drive growth in the region, respondents stated that transport and infrastructure should be the priority for the region, so the Chancellor’s announcement of an extra £5bn of capital investment should come as welcome news.
[FORM: 53]
Peter Chambers, government and public sector partner at PwC in Manchester, said: “Closing the regional prosperity gap is more difficult than ever for government. Money is tight and the scope for significant transfers to more highly stressed regions is challenging. However, sufficient will to rebalance fairly the economy in favour of the regions will, in my view, lead to long lasting and more evenly spread economic well-being for UK plc.
“Private sector growth is essential for our region and the LEPs and enterprise zones will play a central role in helping to create jobs, attract investment and provide the stimulus the North West needs to reach its potential. Creating a higher skilled workforce and renewing our cities, towns and rural areas are essential priorities.
“Improving critical infrastructure is also vital. The much welcomed announcements to electrify the Transpennine Express, cutting journey times between Manchester and Leeds, and create better links around the M56, which will improve access to the airport, will go a long way to boost growth.
“Now is the time to talk up, in a global context, the UK and its regions, many of which have world-class businesses, organisations and universities, to name a few.”
