In his
Autumn Statement, Chancellor George Osborne announced plans to invest in cities in the north of England by way of a new sovereign wealth fund, which will be backed by revenue from the shale gas sector.
The Chancellor said billions of pounds will be spent on road and rail improvements across the region, including the High Speed 3 rail link between Manchester and Leeds, and new franchises for Northern Rail and the Trans-Pennine Express. He also pledged to invest in science initiatives in the north.
Collective effortInvesting in cities nationwide is vital to the UK's economic health, writes CISI Chairman Alan Yarrow, Chartered FCSI(Hon), Lord Mayor of London, in an opinion piece for CityAM.com.
£20m
The amount the UK Government will provide to help companies export for the first time "London alone cannot build a robust, sustainable economy for the entire UK," said Yarrow. "It takes a collective effort across the country - and there are excellent reasons for businesses to consider a presence in a variety of our cities."
He talks about recent visits to Liverpool and Manchester, during which he met regional financial and professional services industry leaders.
Those leaders explained to him how improved transport infrastructure would boost productivity and growth outside London. Yarrow also heard from leaders "about the pool of over 100,000 graduates in the North West - young, skilled, eager people, with a can-do attitude, who would be a tremendous asset to any business that sets up shop nearby".
Hearing what regions outside London have to offer the financial services sector and the wider UK economy will help Yarrow in his efforts as Lord Mayor to open up new markets for regional businesses, he says.
"With a family background in shipbuilding, I know that when our leading cities pull in the same direction, our economy grows, jobs are created and the benefits are felt throughout the UK."
CityAM.com opinion Lacking substanceMeanwhile, the Chancellor's plan to create a northern powerhouse has been criticised by Richard Threlfall, UK Head of Infrastructure, Building and Construction at professional services company KPMG.
Commenting at Building.co.uk on the Autumn Statement, Threlfall said: "City leaders across the country will be drowning their sorrows tonight after the Chancellor offered warm words but nothing of substance on devolution," adding that it was "deeply disappointing" that the Government had "failed to bring forward any proposals for fiscal devolution to England's major city regions, as many had hoped.
"Compared to other countries, the buying power in the hands of UK local government is almost pointlessly small," argued Threlfall. "Without a greater degree of control over local taxes all talk of devolution, investing in our city regions, and rebalancing the UK economy is just hot air."
Building.co.uk article Accessing global marketsThe Chancellor's proposal was welcomed, however, by Robert Hannah, Board Member for the Regions at accounting network Grant Thornton, who offered suggestions for further regional support. "George Osborne's vision... is a good start but what businesses in the north of England also need is global air links, with more international flights from Manchester Airport, to build a truly global powerhouse," said Hannah.
Referring to Grant Thornton's recent
regional infrastructure and devolution survey, Hannah said: "Businesses told us that they wanted more international flights from local airports, rather than from London. The Autumn Statement included a welcome additional £20m next year for UK Trade & Investment to help first-time exporters.
"Alongside this we must make it quicker and easier for our businesses, especially in the north of England, to get to growing international markets like China, India and South America as well as Europe. Manchester Airport is running at only 50% capacity so a commitment to double international flights would bring a huge boost to exports from the north."
Grant Thornton view
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