Executive Summary
The true North Conference Forum, chaired by John Stevenson, discussed the vast untapped potential of the True North of our country and how it could make a significant contribution to the national prosperity. The opportunities exist but there are issues which national Government in particular must address to release that potential for economic growth.
There is much to be celebrated in the True North. There is a strong manufacturing base, world leading universities and research, major international investments and a particular lead in Energy and the Green revolution. However, we must, as the North, improve our image to the outside world and better present our exciting possibilities.
The disparities between the GVA per head of the North and London and the South East are stark. This gap is as great as that of East and West Germany upon the collapse of communism. A vision of change similar to that of Germany is essential. A long term vision and direction will be needed to address this gap – a 40 year programme of equalling up with all party consensus.
There have been years of capital underinvestment in the North. This is without doubt a major cause of our lack of economic growth. So the example used is in the annual transport investment – London received an annual invest per person of £1.183 compared to the North East at £430. This disparity goes back decades and must be reversed in some form of Barnet Formula for the North.
The North’s economy and employment is over reliant on the public sector but, if true economic growth is to happen, the balance must swing back to private sector business and employment. The suggested way forward is through incentives to set up enterprise and to invest not through hand outs. Investment should be rewarded through genuine tax breaks. Red tape especially in planning needs to be stripped back. Costs of employment need to fall. In particular, across the North, “Opportunity Area” should be created to attract and encourage private sector investments, both through inward international investment and through home grown businesses.
Policy Recommendations
- A National Recognition by Government of the priority of closing the Gap along with an Emergency Plan of Action
- A Barnet Formula to guarantee capital investment
- A Cabinet Minister for the North to provide political representation and drive in Government. (Alongside a Shadow Cabinet Minister in the Opposition Cabinet)
- Differential Energy Pricing – Allowing the North’s established low cast energy base to drive a manufacturing renaissance.
- “Opportunity Areas” across the True North with both tax incentives and planning freedoms to attract large scale private sector investment.
- Further and deeper Devolution with fully devolved powers and ring-fenced budgets – let the North determine its own future and make the best decisions.
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