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LEP resignations are a concern say G9

~~LEP resignations are a concern say G9

The resignation of Chief Executive, Edward Twiddy and his deputy Sophie Haagenson from the North East Local Enterprise Partnership (NELEP) is a concern to those involved in the issues surrounding the economic future of the North East says the G9 group of chartered surveyors.

It is a pivotal moment. On one hand we have the LA7 group of local authorities committed to work together in the interests of the region and on the other the NELEP has just promoted its £760m Masterplan on the back of some impressive economic facts published by the NELEP.

So the question is this – is the £760m plan too ambitious or is it comparatively lightweight in terms of total infrastructure investment needed by the region or is the supposedly private sector led NELEP being superceded? For two hands at the helm of the region’s continuing economic rebirth to leave, there are questions to be asked and answered.

For the NELEP has just unveiled its ambitious vision for the area’s economy to provide over one million jobs by 2024. ‘More and Better Jobs: A Strategic Economic Plan for the North East’ builds on the recommendations of last year’s Independent Economic Review chaired by Lord Andrew Adonis. The plan sets out an agenda to create 100,000 new jobs in the next decade, equivalent to an 11% increase in employment.

Is this achievable? For once it seems so if we look at research carried out by Mauricio Armellini, chief economist, NELEP, who says the region’s economy is moving in the right direction. In essence we are now an area which is getting much better as a place to do business, to employ people and be employed.

The latest employment figures confirm in the quarter Nov’13 to Jan’14 the North East saw a historic record of 1.19 million people in employment in our region, an increase of 25,000 people compared to the same quarter one year before. This increase is very substantial for the region and is equivalent to roughly 3.5 times the direct employment at Nissan. The increase of the employment rate in the North East was greater than that of the UK. As a consequence, no other region in England saw a larger drop in their unemployment rate.

This improved labour market performance confirms that our economy is moving in the right direction and at speed. Even though we are starting from a low base in terms of output (GVA) and productivity, the NELEP area saw increases in output and productivity in the period 2009-2012 that are larger than anywhere else in the country.

This is great for businesses, who can recruit workers that are increasingly productive at the lowest nominal wages in the country. But this is not at the expense of workers, who enjoy the lowest cost of living in the country, making the North East real wages some of the highest in the country.

According to ONS labour stats released recently a record number of people are in employment with the largest drop in unemployment rate in England compared to the previous quarter.

Productivity in the North East LEP area is growing faster than anywhere else in the country with GVA growth over the last three years is greater in the NELEP area than anywhere else in the country.

If added together we have what’s driving our growth - increased productivity. In other words, not only we are closing the gap and eliminating the slack – we are also generating new capacity.

G9 comprises BNP Paribas Real Estate, DTZ, Gavin Black & Partners,GVA, Knight Frank, Lambert Smith Hampton, Naylors Chartered Surveyors, Sanderson Weatherall, Storeys Edward Symmons and J K Property Consultants.

ENDS

This was posted in Bdaily's Members' News section by Chris Dobson .