Keeping the growth momentum up
by Judith Barnes, partner, Bevan Brittan LLP
The business mood in Yorkshire is generally quite buoyant at the moment. There are plenty of signs of expansion and activity, with regeneration projects around Leeds city centre coming to fruition particularly around the South Bank.
Accountants Deloitte said in February that construction activity in Leeds had hit a nine year high.
Meanwhile in Bradford the opening of the new £260m Broadway shopping centre – a decade after work first began and then halted in 2008 due to the recession – was a sign of better times and will provide a welcome boost to the local economy.
Improved transport and infrastructure are vital to the region’s success. The Government says that it has committed an extra £300m to improve connectivity in the north, on top of a record £13bn already committed. The green light has been given to HS3 between Leeds and Manchester, and HS2 construction is due to begin next year with Leeds, Sheffield (Meadowhall) and Manchester all featuring as part of phase 2.
It’s not just infrastructure either. Recent figures showed that employment growth in Yorkshire and the Humber last year was almost twice the rate (3.7%) of the national average (2%) – something that should really help to inspire confidence.
But against this positivity, plenty of challenges still remain. The momentum that is being built up needs to be brought together and channelled effectively if it is to translate into long term and sustainable growth.
In this context, the relocation of BIS officials to London was a disappointing development that seems to go against the grain of the Northern Powerhouse concept, with the Moorfoot office in Sheffield due to close by 2018.
It is also a shame that we are yet to see a devolution deal for West Yorkshire, with the sticking point being the need for an elected mayor. West Yorkshire was one of the first areas to create a Combined Authority, but a devolution deal could really unlock further investment for growth.
One area to watch is the ‘Great North Plan’ that is being driven by the IPPR. Its blueprint will set out a more coherent approach to economic planning and strategy development for the Northern Powerhouse. It will also provide an opportunity for Northern businesses to pledge how they will contribute and call on city leaders to open up channels for business engagement in economic planning.
It’s going to be fascinating to see whether, in West Yorkshire, pragmatism will overtake the general desire not to have a mayoral Combined Authority in order to unlock the devolution deal that is on the table (and so follow South Yorkshire that has already concluded a devolution deal).
If not, will the public and private sectors be able to pull together regardless to continue the growth that already exists in the Leeds city region?
