North West views: Life Leisure CEO Malcolm McPhail on the Northern Powerhouse

With the government’s vision of creating a Northern Powerhouse commanding the attention of the North West business community, particularly in the wake of the UK Northern Powerhouse International Conference & Exhibition, at Bdaily we’ve decided to run a new series of interviews to establish just what the region’s business leaders think of the plans.

Is the North West set for an overhaul in the coming years – one to turn the region into a true example of economic empowerment through business growth, job creation and prosperity?

Today we caught up with Malcolm McPhail, CEO of Life Leisure, a social enterprise that manages sports and leisure facilities in and around Stockport.

What does the Northern Powerhouse mean to you?

For me the Northern Powerhouse is about like-minded businesses, organisations, charities and groups working together to demonstrate and promote a level of excellence that exists in the North. In that respect it is more of an energy or philosophy than anything else. Importantly though it’s an energy that has the potential to effect change – change by the region, for the region and for the wider UK economy.

But that’s only going to happen with collaboration. People get too caught up in pin-pointing individual businesses or services that are the next big thing and prove a level of innovation and entrepreneurism is present in Manchester and the wider region; businesses get caught up in trying to be that shining example. This all misses the point.

The ‘power’ of the Powerhouse is in the collective – of showing best practice across sectors, disciplines and organisational structures. And I don’t just mean best practice in business. While economic growth is a focus, positive social impact is just as important. You can’t have one on a sustainable basis without the other.

Are there signs of the Northern Powerhouse starting to bear fruit in the region?

There are signs of progress. Manchester Science Partnerships (MSP) has reported high demand for its facilities – Citylabs 1.0 reached full capacity in just 15 months; China is funding a £1.2bn deal to create 10,000 new homes, including 2,000 in Manchester; transport improvement ‘concepts’ are moving a step closer to reality - for example £75m has been pledged to explore a trans-Pennine tunnel between Manchester and Sheffield.

By far the biggest development, however, has been the healthcare devolution which in itself involved getting 37 different organisations, from hospital trusts to GP commissioners, round a table and working together. No mean feat, particularly when you consider that there is a £450m pot to allocate with an aim of permanently improving the region’s health outcomes.

It’s an interesting one to watch evolve. My concern is that while a devolution of power may have happened, old mindsets and frameworks haven’t caught up yet. Will the same people in the same roles keep making the same decisions? They can’t if the Powerhouse ambition is to be fulfilled but that doesn’t mean change is guaranteed.

Transport improvement is intrinsic to the Northern Powerhouse. Do you believe that spending billions on infrastructure will improve Northern productivity?

On a practical level, yes – improving transport and business logistics will inevitably have a tangible positive impact on productivity. It opens up trade and workforce potential to maximise opportunity within and beyond the region.

But I suspect that’s exactly why it has been such a focus. It’s an easy win. It’s a physical change that people can see and clearly associate with growth. There’s no denying it will be better for the region to have improved transport links between key hubs but over-reliance on this as a strategy is not a long-term solution.

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

Education and opportunity. As the CEO of a charitable trust perhaps I have a slightly different perspective but I genuinely think that maximising and growing the Northern workforce through apprenticeships, enterprise schemes, job programmes and similar educational initiatives should be the priority. We have a strong track record in supporting young people into full-time employment.

We have adequate transport – certainly it hasn’t hindered Manchester in building its credentials as an area of economic importance. What we don’t have at present is a way to get the huge number of NEETS (those not in employment, education or training) back into work. As I mentioned earlier, economic and social impact should go hand in hand.

It’s not an easy fix. It’s not an immediate fix. But small things will make a huge difference. Supporting businesses in making their employment programmes more accessible and inclusive; ensuring that those actually working with NEETS aren’t embroiled in red tape; investing in schools, colleges and other education institutions to broaden the scope, flexibility and reach of their programmes. These will all help mobilize a workforce that wants to work but can’t.

Without opportunity, all the infrastructure investments in the world won’t make a difference.

While Manchester is a key city in the government’s vision, do you think enough is being done to cater for other important North West towns and cities?

Over the past five years Life Leisure has increased turnover by 45% - hitting £11.6m. We employ over 500 people and have invested £3.3m on facilities. We’re a Stockport business that demonstrates best practice in what we do and how we do it. And we are not alone. Business in Stockport has an important contribution to make to the Powerhouse.

However, this doesn’t mean I begrudge Manchester its spotlight. Not one bit. The truth is Manchester is the flagship of the North – it has a history with a future. Being associated with such a great city is more important for the Northern Powerhouse than fighting for a separate voice.

Of course towns and cities outside of Manchester need opportunities to get involved on that level but at the same time I think it’s up to businesses in those locations to make that happen. Anyone who feels like they are missing out only has themselves to blame for not taking a place at the table – ‘Carpe Diem’ to borrow a phrase from last year’s staff conference.

For all our latest Northern Powerhouse news and views, click here. Share your views and get involved with our latest interview series by contacting North West editor Richard at richard.bell@bdaily.co.uk