State of the Region – has 2011 closed the North-South divide?
LOCAL enterprise partnerships and the introduction of enterprise zones are being touted as key drivers in closing the North-South divide.
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 the impact Government initiatives are having on the Yorkshire 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]
Natasha Luther-Jones, partner in DLA Piper’s Leeds office, 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 through the RGF to projects around the country, although it still does not match the funding levels previously available to the now disbanded Regional Development Agencies, which totalled approximately £1.4bn per year.
“Last year, when asked what should be done to drive growth in the region, respondents stated that transport and infrastructure should be the priority and so the Chancellor’s announcement of an extra £5bn of capital investment for big, strategic infrastructure projects should come as welcome news.
“The planned electrification of the Trans-Pennine Express line will help to bring to fruition the goal of a closer partnership between the Leeds City and Manchester City Regions and to increase opportunities for development. The pledge for Leeds Rail Growth (two new railway stations at Kirkstall Forge and Apperley Bridge) will also improve accessibility, which will attract the skills, innovation and inward investment this region needs to realise its ambitions for growth on a national and international level.”
[FORM: 53]
Roger Marsh, northern leader for PwC’s government and public sector practice and senior partner in the Leeds office, 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 ever more challenging. However, sufficient will to rebalance fairly the economy in favour of the regions should, in my view, lead to long lasting and more evenly spread economic well being for the whole of UK plc.
“Private sector growth is essential for our region and the LEPs and enterprise zones, together with organisations like Marketing Leeds, will play a central role in helping to create jobs, attract investment and provide the stimulus Yorkshire and the Humber 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 announcement to electrify the Transpennine Express, cutting journey times between Manchester and Leeds and other Northern cities and steps to reducing tolls across the Humber will go a long way in boosting growth for the region.
“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.”
