Partner Article

United we can unlock the door to economic growth

It’s a tremendously exciting time at the moment in the life of the North East with some fundamental changes being proposed in an effort to improve our economic performance.

It’s clear that we need a more comprehensive approach to transport, job creation, marketing and dealing with inward investment and this is a major focus for the seven councils of Durham, Northumberland and Tyne and Wear (aka the LA7) whose proposal to form an official Combined Authority (CA) is progressing.

A recent review looking at whether this was a ‘functioning economic area’ concluded that there are strong interdependencies across local council boundaries to create opportunities.

The CA was also supported by the recent North East Independent Economic Review carried out for the North East Local Enterprise Partnership (NELEP). This emphasised those comprehensive arrangements embodied in the CA proposals.

The plan is that such an Authority would provide a joined-up approach to deliver the strategic objectives. In particular, it would provide an ‘Investment Gateway’ drawing on the skills of the NELEP and to better promote the area and avoid duplication of effort.

An LA7 Local Transport Body has already been established to tackle the difficult task of setting transport priorities across the region within a long-term investment programme.

The CA would also have a stronger voice in discussions with the European Union, UK government departments and with organisations such as the Highways Agency and Homes and Communities Agency. This was lost when the old regional development agencies were closed down.

To form a CA there needs to be constitutional changes and the UK government is now consulting on the proposals. You can have your say online at https://www.gov.uk/government/consultations/proposal-to-establish-a-combined-authority-for-durham-northumberland-and-tyne-and-wear

There are some interesting questions. What happens, for instance, if we ‘do nothing’? Do you support the idea? Would it improve efficiency and the economic condition in the area? How will it impact on the interests of local communities? And last but not least, how will the authority work with the LEP and ensure that the private sector is ‘hardwired’ into the leadership and decision-making for the functional economic area?

If the consultation is positive then governance could be granted by spring 2014. It was reported in The Journal on Saturday that any prospect of handing the North East these powers from Whitehallwill only get the go-ahead if there is overwhelming support shown during the consultation.

That the North East needs all the help it can get is beyond doubt but if you still need convincing, check out the recent the UK Competiveness Index 2013.

It shows the divergence betweenLondonand the South East and the other English regions is growing. The competitiveness of northern cities, such as Newcastle and Sunderland, has improved but the four LEPs in the North of England are at the bottom of the table.

Competitiveness is considered to be the capability of an economy to attract and maintain firms with stable or rising market shares in an activity, while maintaining stable or increasing standards of living for those who participate in it. This affirms the opinion expressed repeatedly in this column that we have a lot of work to do and achieving greater competitiveness is essential.

In conclusion, my vote is… yes, we are far better off with a Combined Authority to help us to achieve competitiveness more quickly, especially working in a strong relationship with the LEP and the private sector.

This was posted in Bdaily's Members' News section by JK Property Consultants .