Budget 2015: Region must unite to challenge Northern Powerhouse

THE West Midlands has to speak with a united voice if it is to compete with the so-called ‘Northern Powerhouse’, business leaders in Greater Birmingham have said.

The message was conveyed by the president of the Greater Birmingham Chambers of Commerce, Greg Lowson, in response to the latest support measures outlined by Chancellor George Osborne in his Budget.

In his speech to the Commons, Mr Osborne said he intended to build on the successes achieved in London by developing the Northern Powerhouse – a collaboration of councils in the North West and Yorkshire.

He said working across party lines, and in partnership with the various councils of the north, the government had a comprehensive Transport Strategy for the North.

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It is also funding the Health North initiative and promoting industries from chemicals in the North East to technology in the North West.

It has agreed a new city deal for the West Yorkshire Combined Authority and the Chancellor described his agreement with Greater Manchester on an elected mayor as “the most exciting development in civic leadership for a generation”.

“I can announce today that we have now reached provisional agreement to allow Greater Manchester to keep 100% of the additional growth in local business rates as we build up the Northern Powerhouse,” he said.

“For where cities grow their economies through local initiatives, let me be clear: we will support and reward them.”

However, he said the door was not closed to other areas and should they wish to discuss similar measures with him then his door was open.

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Responding, Mr Lowson said: “This is the biggest hint yet that Greater Birmingham and the surrounding region must get its act together and create an authority that can speak for the wider economy.

“Only then can the West Midlands begin to enjoy that same sort of treatment the government has given to Greater Manchester.

“The Chancellor also said that West Yorkshire was to create a combined authority adding further evidence that other regions are pulling together and we must do the same.”

It is not just politicians and business leaders from this area that have stressed the importance of a united front. London Mayor Boris Johnson, speaking with TheBusinessDesk.com last month stressed that if the region was to get its voice heard in Whitehall then it had to speak as a single entity.

Mr Lowson added: “He (the Chancellor) also announced that Northern Ireland is to be given greater powers to set corporation tax. Since the West Midlands has a greater economic output than Northern Ireland there is a strong case for our region to have greater control of its tax affairs.”

Martin Guest, managing director of the Birmingham office of property consultancy CBRE, said: “Finally we can put a price on regional devolution. In exchange for electing a mayor, Greater Manchester will get new powers over skills, transport and health budgets. In addition, the Chancellor has awarded them “100 per cent of the additional growth in local business rates as we build up the Northern Powerhouse”.

“Surely this enough of a carrot to push local authorities in the West Midlands into concord?

“If not, may be the Chancellor’s handful of references to the ‘Northern Powerhouse’ will convince the naysayers. We can’t afford to be left behind with other UK regions accelerating at our expense.”

Louise Bennett, chief executive of the Coventry & Warwickshire Chamber of Commerce said the Chancellor had given a clear hint of his willingness to speak to other areas.

“It’s clear that we have to, as a region, look at this again with some urgency,” she said.

Andy Street, chairman of the Greater Birmingham & Solihull Local Enterprise Partnership, (GBSLEP) said: “We also welcome the continued support for devolution as outlined in the speech.

“We intend to bring forward strong proposals during the next Parliament that demonstrate the improved outcomes that will be generated here in Greater Birmingham by a more localised agenda.”