Partner Article

‘Public sector recession’ predicted in the North

Economic growth in the North could be hindered by a lack of funding from both public and private sectors.

That’s the warning from the latest report published by The Northern Way, the collaborative effort between the three Northern RDAs – Yorkshire Forwad, the North West Regional Development Agency, and One North East.

The report - - was produced by Michael Parkinson CBE, Director of the European Institute for Urban Affairs, and shows that a likely ‘public sector recession’ could jeopardise the continuance and development of many projects vital to economic growth in the North of England.

Based on evidence from private sector investors and developers, delivery bodies and agencies working on the ground, the report surveys the current market conditions. It finds evidence of good practice, but also uncertainty about how to deliver through more difficult times to come.

Michael Parkinson said: “Many good people are doing many good things on the ground to limit the potential economic, social and physical damage to places in the North. We have shown many examples of what is possible even in adversity. But often their levers are limited and their resources declining.

“It is crucial that policy makers nationally and locally do all they can to sustain the gains that have been made in the North in recent years and to limit the potential damage threatened by the worst credit crunch and deepest recession in living memory.”

The North East Chamber of Commerce (NECC) echoed the warning, saying that its call for a North East Economic Recovery Test was more vital than ever following publication of the report.

Ross Smith, NECC head of policy, said: “Policy changes are needed to make investment much more attractive in the North East. This includes a much more developer-friendly planning system, commitment to infrastructure improvements and proper incentives for local authorities to deliver development which will attract businesses into the region.”

Alan Clarke from One North East said: “Economic regeneration can have a strong future, if we’re prepared to take the tough choices necessary and focus more limited resources where we can generate the best impact on the economic recovery. Our efforts will focus on joining up delivery, supporting new economic opportunities and jobs across the North.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .