Smaller firms in region ‘unsure of how Powerhouse can help them’
Banking on the Powerhouse
THE OWNERS of small and medium-sized businesses in Yorkshire are significantly less confident in the Northern Powerhouse vision than entrepreneurs based elsewhere in the North of England, new research has revealed.
A study commissioned by the Yorkshire Bank’s owner, CYBG, showed that more than half of small and medium-sized businesses in Yorkshire say they do not see how the Northern Powerhouse will benefit the economy, with nearly two thirds claiming they do not understand the impact it will have. Across the North, more than half of decisionmakers said they were confident in the investment being made by the Government, and that it will benefit the local economies.
However, when it comes to Yorkshire, 51 per cent of small and medium-sized enterprises bosses said they are not confident in how the Northern Powerhouse will benefit them, compared with 22 per cent in the North-East and 45 per cent in the North-West.
Chief executive at CYBG David Duffy said: “These figures show that there is strong support from the business community for the Northern Powerhouse but they also reveal that more needs to be done to convince businesses, especially in Yorkshire and the Humber, that the Northern Powerhouse will bring opportunities, investment and growth.”
THERE ARE three plausible explanations for companies in Yorkshire having less confidence in the Northern Powerhouse agenda than their counterparts elsewhere. Either this region is lagging behind neighbouring areas when it comes to infrastructure investment, bosses are more parochial in their outlook – or they have become disengaged because of the ongoing political machinations over devolution.
As such, this survey by CYBG, owner of Yorkshire Bank, is a wake-up call that should be heeded. The Northern Powerhouse – and also the empowerment of metro-mayors – won’t fulfil its true potential if these agendas are simply left with the area’s political elite. Quite the opposite. They will only come to fruition, and prosper, if they involve entrepreneurs – the wealth-creators who know how to do deals and create jobs – and the public whose prosperity depends on the quality of decision-making.
And, given this, it’s welcome that CYB’s chief executive David Duffy is joining the Northern Powerhouse Partnership, the body set up by George Osborne, the former Chancellor, to look at what more can be done to advance small businesses – the backbone of the economy – and ensure that their needs are reflected in future policy-making.
For, while major investment by one global firm can be transformative, such as the impact of Siemens on Hull’s economy, the cumulative effect of a more dynamic SME sector will be just as significant, if not more so, if the right policies are in place. That work begins now.