What a Northern Powerhouse in Yorkshire means to: PolyGlobal’s Andrew Young

As Bdaily’s Northern Powerhouse series continues to give the business people of Yorkshire the opportunity to voice their opinions on the the government’s Northern Powerhouse initiative, we speak with PolyGlobal’s sales and marketing manager, Andrew Young.

Hi Andrew, so what do you think the Northern Powerhouse will do for Yorkshire?

In the short term, the very concept has brought increased levels of media scrutiny and attracted debate from companies and political commentators both inside and outside of the area.

This has highlighted the characteristics and credentials of the region and has therefore, at the very least, led to a critique of our strengths and requirements and provided increased publicity and promotion. Moving forwards, any significant outside investment can only have a positive impact, but until more detailed plans exist beyond the investment in infrastructure on how the ‘Northern Powerhouse’ will be realised , it is impossible to forecast the long term impact.

What will the Northern Powerhouse do for PolyGlobal?

As a supplier to the rail industry, the commitment to HS2 should have a direct and immediate impact on our business through the investment in rail infrastructure. Beyond that, it is very difficult to see any clear long term advantages.

I see improvements in the types of infrastructure addressed by the plans for the Northern Powerhouse having more of a direct effect on companies within the service industry.

Potentially we will see additional publicity for ourselves and other important and significant companies in the area that may lead to new business enquiries, growth of existing accounts and opportunities into new markets. However, this is largely dependent on the other facets of the Northern Powerhouse concept and how they address the needs of the area.

Has the government done enough to convince you of its commitment to Osborne’s vision?

George Osborne said last year that the ‘Cities of the North are individually strong, but collectively not strong enough’ and that ‘The whole is less than the sum of its parts’.

By this it is clear any future investment will be targeted at the area as a whole rather than individual cities or localised regions. It is therefore safe to assume that should the economic strength of the North grow over the coming years, the only way it will do so is on the basis of support from the public sector, as it will be a combined ‘Northern Powerhouse’.

Currently, there is no detailed long term plan to build on the infrastructure investment and so I am yet to be convinced on how the area will be able to maximise the impact of the infrastructure investment.

Connectivity has been a major driving force behind the Northern Powerhouse. Do you believe that spending billions on infrastructure will improve the economic climate of the North?

In the UK’s current political and economic position, it is the role of the government to remove barriers to trade and facilitate private economic investment and growth.

Whilst improving the physical infrastructure of the area would in principle satisfy the objective, there is no doubt that simply investing money into our infrastructure, without a structured plan for building on that investment will have little long term impact.

The success of London’s financial growth has been built on overseas investment and making the city attractive to skilled labour and growing businesses. Improving infrastructure is a step towards this, but only one of a number of factors that influence the decisions of businesses and the labour market.

What, if any, other sectors/industries should the government key in on to achieve a Northern Powerhouse?

Historically, primary and secondary industries have had the most significant impact on the economic climate of the North. Whilst major changes have occurred to these sectors, manufacturing is still a core market.

The Advanced Manufacturing plant in Sheffield, is a great example of bringing a facility to the area that attracts outside investment and businesses. Hopefully, long term, it will help support the integration of labour from our educational institutions into the markets and businesses that will provide long term economic strength of the area.

Whist we aren’t able to compete with the attractiveness of London as a complete package for overseas investment in some industries such as banking, the inherent and established skillset of our area’s labour market in this field will always be significant.

I think the public investment in making the area more attractive for the younger labour market would be beneficial. The huge variety and availability in the social and leisure scene in London is obviously a huge draw for University leavers, and investment in these areas would hopefully make the decisions of the labour market more balanced.

Are there any other areas which you believe money should be spent on, ahead of Transport?

Facilities that bring together key industries to provide combined services. The Platform to bring likeminded businesses together, affording them the opportunity to showcase what they do and make valuable contacts.

As with Sheffield, should the other regions in Yorkshire try and strike a devolution deal with the Government?

This seems to be in complete contrast with the aims of the Northern Powerhouse and the premise of a connected economy. It also further questions George Osborne’s comments regarding the strength of our cities as individuals.

In London, there are obviously significant powers that have been devolved to allow it a level of autonomy to make decisions that are right for the economy, but would not be right for the UK as a whole. Within this, there will be policies that are more beneficial to some areas of the city than others and may even have a detrimental impact in some. However, these decisions are made to the benefit of London as a whole.

If other Northern Regions look to drive devolved powers, I would question the ability of the Northern Powerhouse to have a conjoined and consistent approach and therefore be successful in achieving Osborne’s vision of providing a combined economy. Individual cities or regions would have the ability to install significant different policies that pull in different directions and contradict the premise of the Northern Powerhouse, as frequently what would be most successful in Manchester, for example may not have the same impact in Leeds.

Will the Northern Powerhouse be realised in Yorkshire?

I think if the promise of investment is fulfilled, and followed with a conjoined and holistic plan to achieve the core aims of the government’s plan, then the Northern Powerhouse can be realised in Yorkshire.

It is imperative that the structure of devolved powers, through elected mayors or other means, is repeated across the area covered by the Northern Powerhouse so that each individual area is operating with equal say in the connected economy. Without that, the presence of differing dissolved powers will likely act as a divide.

In its own right, Yorkshire has done many things over recent years to raise the profile of the area and attract outside interest. Publically funded investment, if channelled in the right way, should help that growth.

Thank you Andrew.

Don’t miss our latest Northern Powerhouse coverage here. To nominate a Yorkshire business leader to be part of our new series, contact Nick at nick.hill@bdaily.co.uk