IPPR calls for economic plan for the North

22 Jul 11
The North of England needs a ten-year strategy to stop the concentration of economic power in London, the Institute for Public Policy Research North has said.
By Richard Johnstone | 22 July 2011

The North of England needs a ten-year strategy to stop the concentration of economic power in London, the Institute for Public Policy Research North has said.

Warning that the North risks being left even further behind, the think-tank is bringing together major figures from the business world to develop a plan for economic growth.

It launched its Northern Economic Futures Commission yesterday with a call for evidence after finding huge disparities in regional investment. It said spending on transport projects in London and the Southeast was now more than double that in the Northeast, Northwest and Yorkshire.

Investment in science and technology is almost double in the south, and there are more business start-ups in London.

The commission will draw up a direction for the North of England’s economy, with policies and a planning framework to enable the government to take decisions about strategic investment. It will also provide evidence for decisions by Local Enterprise Partnerships. The commission might propose more powers for Northern cities, such as those being given to the London mayor to create development corporations.

Commission chair Geoff Muirhead, former group chief executive of Manchester Airports Group, said: ‘Northern prosperity is national prosperity, although this debate is so often framed in terms of a North-South divide. With London, Scotland and the other devolved nations increasingly free to develop their own plans with their own powers, it is time for the North to set out its stall for what it needs to remain competitive in the global economy.’ The commission will also include Trades Union Congress representatives and members of local business groups.

The launch of the commission came just two days after the government announced that it was creating a ministerial group, chaired by Deputy Prime Minister Nick Clegg, to develop new ideas for cities. The government also appointed minister for decentralisation Greg Clark to take on the additional role of minister for cities.

This will initially focus on the eight largest cities outside London – Birmingham, Bristol, Leeds, Liverpool, Manchester, Newcastle, Nottingham, and Sheffield.

Speaking at the launch of the commission, Clark said cities had a key role to play in restoring economic balance.

‘Even before the recession hit, success was uneven. The average annual growth in gross value added in the Northern areas was 4.6%, behind the whole of England at 5.2%. If we want to see a rebalancing of the economy we want to see cities, and the North, ahead of the average, pulling up the average, rather than below it.’

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