North-South spending divide unacceptable, say business chiefs
A GROUP of the North West’s most influential business leaders have challenged MPs on the disparity in capital spending between North and South.
The North West Business Leadership Team (NWBLT) said the government spends just £134 per head on capital projects in the North, compared with £2,731 in London.
The group, which includes the heads of businesses such as BAE Systems, Manchester Airports Group, United Utilities, Peel Group and Siemens, addressed North West MPs at the House of Commons.
Juergen Maier, managing director of Manchester-based Siemens Industry, chaired the discussion.
He said: “The North West has excellent economic potential, and could be a key hub for exporting in the UK – you only have to look at the ambitious plans to develop our regional ports to see this and we already have a very strong exporting manufacturing base.
“But what is critical is that capital spending is spent where it can generate the best returns for the UK economy – it can’t be right that the South East gets 20 times more capital spend per head than the North.”
“It is critical that capital spend per head is regionally equalised – so we can rebalance the economy across the UK, which will help drive a sustainable recovery. Aligned to this should be an unyielding commitment from the government to invest in skills for industry, transport infrastructure, as well as research and innovation.”
The issue of capital spending is also a priority for the Northern Economic Futures Commission which was set up last year to conduct research into the critical economic issues facing the region. It is due to publish its final report shortly.
