What is the Northern Powerhouse?
The Northern Powerhouse is an incentive by the UK Government which was proposed by the 2010-15 coalition government continued to be implemented by the 2015-2017 Conservative government. The focus is to invest in the major cities within the north of the UK, to continue development in these areas, including Manchester, Leeds, Hull, Newcastle, Sheffield and Liverpool.
Boosting investment in the north of the UK
The Northern Powerhouse means that core cities across the north of the UK are receiving investment that is much higher than cross-UK average inward investment. This investment can boost the local economy in these areas by improving transport and culture and investing in skills and innovation schemes. Budgets are being allocated to the elected mayors for the different cities, who then have the power to make decisions about where the investment would be best used.
Success of the Northern Powerhouse
Within the Northern Powerhouse there are over 1 million businesses in the private sector alone, and over £50 billion of goods are exported worldwide from the Northern Powerhouse on an annual basis. However, the Northern Powerhouse backs business growth across the north in order to provide resources and power to cities to unlock the great potential they have to grow and improve.
Local growth and devolution
A key part of the approach of the Northern Powerhouse is to give more power to local authorities in Northern cities, who can make the most informed decisions about where money should be allocated. £3.4 billion has been given to the Northern Powerhouse in Growth Deals which are able to provide financial support to specific local projects and drive growth.
Innovation, education and skills-based development
£70 million has been allocated to the Northern Powerhouse Schools Strategy, alongside investment into other key areas for innovation and development. These include millions of pounds of investment into the Graphene Institute, the Sir Henry Royce Institute and many other research centres.
Transport and city links
Investment within the Northern Powerhouse is also being given to improve transport and links in and out of the major cities in the north. £13 billion has been promised to be invested into the transport infrastructure, which not only aims to provide greater connectivity, but also more jobs. Roads and railways and airports are being improved, as well as other areas of connectivity like ensuring that more and more homes have access to superfast broadband.
Properties and infrastructure growth
As more and more investment is made into the Northern Powerhouse, we should also see growth in housing and commercial properties as business booms and work opportunities draw people to northern cities across the UK. This will have a profound impact on the construction industry.
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