How is the Northern Powerhouse set to benefit the UK’s economy?
The Northern Powerhouse has received a lot of attention in recent months, both in the run up to the general election in December and also in the weeks since. This project is all about building a stronger economy in the north of the country by investing in skills, innovation, transport and culture. It’s a concept that goes back to the Coalition government of 2015 and one that has yet to really reach its full potential. If the current government does finally put the project into practice how could it actually benefit the UK’s economy as a whole?
What is the Northern Powerhouse?
The term Northern Powerhouse first entered political language in 2015 as a project designed to boost the economy of the north of England. The UK has an incredibly centralised government and economy – most of it is in the south of the country and clustered around London. As a result, the north of England has been underinvested for decades and this has arguably had a negative impact on the economy of the UK as a whole.
Although a lot of attention has been paid to the need for investment in the north this isn’t designed to come at the expense of the south of the UK. Instead, the resources that are funnelled into the Northern Powerhouse will provide ways for these quite different economies to compliment each other.
How will the Northern Powerhouse benefit the UK economy?
Ensuring that the entire UK economy is performing robustly
In order for the UK as a whole to meet its economic potential, the whole country needs to be fully functioning. It’s just not possible for this to happen when large parts of it are underperforming. This is currently the case for many areas that fall to the north of Birmingham.
Driving a devolution agenda
There are a lot of potential benefits to devolution and putting more power into the hands of local people and places to create the freedom and flexibility required to improve economic prospects in the immediate area. This could also considerably take the pressure off central government.
Countrywide transport links
Alongside HS2, Northern Powerhouse Rail represents an opportunity to really connect locations across the country. With improved transport links in the north it would be possible for more people to live and work in different cities and commute between the two. This could attract a larger and more vibrant working population, improving local economies and also reducing pressure on infrastructure, such as housing, in cities in the south.
Skills provision to support growing businesses
The Northern Powerhouse should bring increased skills provision to the north, making it a much more attractive location to start and grow a business. For the UK economy as a whole to thrive it’s crucial that there is innovation and entrepreneurship right across the country.
The Northern Powerhouse is a project that could create the conditions for the UK’s economy to go on to bigger and better things. Get in touch with The RG Group to see if we could work with you on your latest project.