Northern Powerhouse investments in tech hubs and research centre
A DEVOLUTION deal for West Yorkshire Combined Authority was the highlight of the announcements around the Northern Powerhouse agenda by Chancellor George Osborne in the Budget speech.
The deal will give West Yorkshire further responsibility over skills, transport, employment, housing and business support.
However it falls well short of the scope of Manchester’s agreement announced last year.
Roger Marsh, chairman of the Leeds City Region Enterprise Partnership, said: “I am pleased that the Leeds City Region has reached a devolution agreement with government.
“Would we have liked more? Yes. Is this the end of the process? Absolutely not. Our region’s scale and business strengths are making a real difference to UK global competitiveness, so come 8 May we will be banging on government’s door to secure all of the pounds and powers we need to deliver our ambitious agenda for growth and ensure the Northern Powerhouse becomes an economic reality with our region at its centre.”
Mr Osborne also announced that, in partnership with the councils of the north, a comprehensive Transport Strategy for the North will be published. It will focus on the development of a network of high-quality rail connections across the north.
Other investments include £11.2m for tech hubs in Manchester, Leeds and Sheffield, and £14m for an Advanced Wellbeing Research Centre at the Olympic Legacy Park in Sheffield. There will also be £20m for Health North for centres in Newcastle, Liverpool, Manchester and Leeds-Sheffield.
Julian Hunt, partner and technology lead at Deloitte in Yorkshire, welcomed the financial support for technology clusters in the three northern cities.
He said: “Technology clusters are important to the success of the UK digital economy and this support for tech incubators in Manchester, Leeds and Sheffield will assist innovation and growth for years to come. All three of these cities are increasingly dynamic start-up zones, with innovative universities and employees. It builds on the Government’s existing support through programmes such as the Catapults network.
“This additional financial support will be welcomed by digital businesses. Deloitte’s analysis finds that the most common sources of funding for the fastest growing technology companies in the last five years was cash generated by the business and bank debts. For some, owner funding was a conscious decision to sustain the company themselves. For others it was a necessity during the financial crisis, when funding was difficult to secure.
“The Government is keen to build on the nationwide success of digital businesses. Recent government research found there were 1.46 million digital jobs across the country and 74% of digital businesses operate outside of London. The UK’s digital business revolution is a nationwide growth story and today’s announcement adds to this momentum.”
The Chancellor also announced a pilot scheme to enable Greater Manchester and Cheshire East to retain 100% of additional business rates growth.
There are also plans for extensions of the Enterprise Zones in the Humber, Manchester, Mersey Waters and Tees Valley, while the Leeds Zone will be amended and a zone developed in Blackpool.
