Why 2015 must be the year the North takes off
THE North is fashionable again, and this time it’s about economics. It has enjoyed sporting and cultural success, now we need to focus on an economic revival that delivers George Osborne’s ‘Northern Powerhouse’.
But it won’t be easy to bridge the North-South economic divide.
We need bold, collaborative political leadership, ‘slow money’ investment in local infrastructure and universities with world- class aspirations. Many more businesses like Nissan, JLR and the BBC need to invest as the centrepieces of worldbeating Northern hubs.
We have to up the pace: the North-East has to do better than one investment – Nissan, then Hitachi – per generation. But I am optimistic that civic leaders and innovative businesses can deliver the necessary investment, growth and jobs.
Here are f i ve reasons why the North can rise again in 2015:
1. Devolution. Big successful cities drive economic growth. Greater local decision-making, for example in Manchester, then Leeds and on to Birmingham, Liverpool and Newcastle, will e nable i nvestment in projects that provide a platform for growth. We need a real local head of steam behind projects such as the Icknield Loop in Birmingham and the East Leeds Orbital Road.
Devolution encourages and motivates inspired local leadership, and the Local Enterprise Partnerships are forging connections.
The politically complex Birmingham LEP is thriving under the outstanding leadership of Andy Street, whose credentials include running the hugely successful John Lewis Partnership.
2. Digital. Moving the BBC to Salford was brilliant. It will anchor a digital media i ndustry being actively encouraged by mayor Ian Stewart. L&G’s first private rented sector investment will be in Salford – this could be another £1billion new asset class for us. We would also welcome co-investing in Media City.
Tech innovation doesn’t just happen in London: Birmingham had thousands of start-ups last year, including exciting tech companies that could be stars of the future. Public wi-fi is a key investment – the North needs more mobile businesses.
3. Skills. The North has powerful universities but they need to step up and aspire to be as good as Imperial and UCL.
The North can’t afford to fall behind: the Government’s science investments in Manchester and Newcastle require commercial output like MIT and Stanford.
We s hould aspire to achieve a high-tech industrial boom – in digital, medtech and engineering, where the West Midlands automotive sector already shows what world class R&D coupled with a skilled workforce can achieve.
4. Population. Manchester’s population grew 10pc in the decade to 2011, and the pace continues. Birmingham expects to have another 150,000 by 2031. Accommodating and servicing everyone will in itself generate growth, but it has to be funded and delivered properly using slow money.
5. Transport. We can do better. The priority isn’t HS2, which risks being another Concorde, but much- needed i mprovements to transport within our cities. Projects such as the Birmingham Metro and improvements like Merseytravel in Liverpool and the Ordsall Chord in Manchester. Manchester airport can now handle about 20m passengers annually – Birmingham needs a similar upgrade.
WHEN I visit f amily i n the North-East, and out on business around the UK, I see real civic pride and determination to make our cities succeed.
Just look at the Atlantic Gateway – a project aiming to create 250,000 jobs by 2030. This is vision on the same scale as Michael Heseltine’s pioneering work for Canary Wharf.
All we need is the investment, the slow money, in scale, to get our cities rebuilt and regenerated, to put some great competitors to London back on the map.
Institutions such as Legal & General want to invest. We have the resources: we plan to invest £15bn in the UK, most of which we will bring back from overseas. Other institutions and sovereign wealth funds can do so too. Let’s get it done.