Clusters to boost levelling up
THE Humber is to become the CBI’s first “demonstrator cluster” as it seeks to turbocharge levelling up ambitions. The leading business organisation has described hubs of industrial excellence as the key to powering economic growth and the only way to achieve sustainable prosperity across the UK.
Working with anchor institutions, from universities to key stone businesses, it will draw together expertise from industry, government and academia to shape a clusters playbook - defining the path to success.
The Humber, home to plans for the biggest energy transformation ever seen, will lead the way, as it looks to turn the most carbon intensive industrial zone into a Net Zero exemplar with offshore wind, hydrogen fuel switching and carbon capture and storage key pillars.
The CBI will partner with the Zero Carbon Humber consortium, a 14-strong industrial powerhouse behind the ambition.
Tony Danker, CBI directorgeneral, said: “Decarbonising industry is not an option for reaching Net Zero – it is a necessity.
And with nearly half of the UK’s industrial cluster emissions coming from Humber and Teesside, it is a site of immense national importance to our climate goals. “Our new Thriving Regions and Nations steering committee will work closely with Zero Carbon Humber, plus other consortiums and broader stakeholders, over multiple years to work towards that target in what will be the first of our trailblazer clusters.
“Clusters have the power to be a transformational play, uniting high value sectors, firms, skills and investment in a place.
“The CBI and Zero Carbon Humber are ready to signpost a road to prosperity which all UK regions and nations can follow.”
The fresh approach is highlighted as supporting the “crowd in” of private sector finance and expertise to drive regional economic growth, “an antidote to the cost crisis”.
Regional roadshows will now follow, supported by Virgin Media O2 Business.
“From automotive in the North East and West Midlands, to aerospace in the South West, and from the Holyhead Hydrogen Hub in Wales to the golden triangle of research and innovation in the South East, the UK is rich in clusters of excellence,” Mr Danker added.
“These strengths create opportunities and enhance lives by equipping communities to forge and grow unique identities on the global stage. There is no escaping the squeeze on households and businesses.
“Firms are taking action, but ultimately, an economy relentlessly striving to grow and become more productive is the best long-term solution to the cost-of-living crisis.
“A lot has been spoken about levelling up and the need for regional growth; now it is time to turn words into actions.
“Business can be a powerful force for positive, lasting change, and this project will unleash its potential as the catalyst of renewed economic momentum.”
The stance has been welcomed at government and cluster level.
George Freeman MP, Minister for Science, Research and Innovation, said: “Growing these clusters is the best way to build an innovation economy for all.
“That’s why the CBI’s programme will present an excellent framework for our focus on powering economic growth across the whole country through clusters.
“This pioneering regional programme, starting with the Net Zero cluster in the Humber, will help deliver on our clear commitment to harness clusters as key to both strengthening our global science superpower role and supporting jobs and opportunity for all UK citizens.”
Richard Gwilliam, head of cluster development at Drax, and chair of the Humber Energy Board, said: “Decarbonising the Humber region will be critical if the UK is to reach net zero by 2050.
“The Zero Carbon Humber consortium demonstrates what can be achieved when businesses within a cluster work together.”