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Government missing out on untapped potential in North

The gap between the North of England and South East unemployment rates are the widest on record, according to IPPR North.

In a new report, it has been revealed that the North of England has experienced a labour marker double-dip over the last year, while unemployment in the South East has remained below its recession peak.

Now IPPR North are calling on the Government to put more focus on cities in the North of England or risk preventing the strong economic recovery which the UK needs.

Commenting on the findings, Ed Cox, director of IPPR North said: “There has to be a greater focus on cities in the North if we are ever to get out of the mess the UK economy is in.

’Cities like Manchester, Leeds and Newcastle have the potential to create real growth in the economy but this potential has to be taken seriously by the government with a focused regional policy.

In the North just 5% of long term claimants left unemployment in January 2012, and the number of young people leaving unemployment in the North has reached levels not seen since the last Conservative Government in 1997.

White collar jobs have also been affected by unemployment, with managers, senior officials and administrative staff hit the hardest. By contrast numbers of managers and senior officials have been increasing since the recession ended.

Mr Cox has now suggested that infrastructure investment could be a positive way for the Government to encourage growth in the North.

He added: “Investment in transport projects is one way of doing this – they create jobs in the short term and create the conditions for long term growth by improving the connections between places.

“The government has indicated its intention to invest in the Northern Hub rail project, which will address the bottle neck around Manchester.

“This project is set to deliver a £4 boost to the economy for every £1 spent. We need many more projects like this one, and they need to be brought forward and begun as soon as possible.”

He has also recommended a five-point plan for jobs growth, which alongside infrastructure includes a targeted jobs guarantee, a regional investment bank, innovation clusters and capital allowance concessions.

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