Member Article

North East Northern Powerhouse insight: Jonathan Gold

In an ongoing series, Jamie Hardesty is talking to North East business leaders in an attempt to understand the region’s feelings towards the government’s Northern Powerhouse initiative.

The next regional entrepreneur to take part in our investigation is Jonathan Gold, Managing Director of regional fund managers Rivers Capital Partners, which manages two funds from the Finance for Business North East programme.

Jonathan is a specialist on startup, seed and concept investment and investment readiness with a background in technology licencing. He is also currently Chair of Council at Josephine Butler College at Durham University and a Fellow of the Royal Society for the encouragement of Arts Manufacturing and Commerce (RSA).

What does the Northern Powerhouse mean to you?

There is a danger that we all sit around waiting for central government in London to tell us what the “Northern Powerhouse” is all about. It’s what we make it ourselves that matters, a way of bringing together the strengths of the North of England. A collective expression of: we are greater than the sum of the parts.

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

The North East is a hotbed of entrepreneurial activity, engineering and also tech-media clusters. But we are a smaller geography and economy than say, the North West. Coming together as the Northern Powerhouse benefits all, and shows depth and breadth in technology and investment that will attract attention.

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

To me the key to the idea is to connect together across investment, infrastructure and business and to showcase what we have more effectively to London and the world. A brand we can get behind to showcase the activity already here and attract more investment and interest.

The Northern Powerhouse, for example has more small high growth businesses than the South of England (excluding London) or the Midlands. This is not about how the politicians view us, what matters is how the people, private business owners and investors see this as a place to be and work.

I’m not sure that the government in London understands the North. That’s OK as long as the local politicians take the freedoms offered behind the devolution settlements, private business can thrive and work together using the brand of the Northern Powerhouse.

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

Transport is crucial. What worries me is, for the Northern Powerhouse to mean anything beyond the brand and businesses cooperating, then money needs to be focused to connect the great cities of the North. Better connections to London is nowhere near as important as say linking Manchester to Newcastle with a fast rail link.

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

The Northern Powerhouse Investment Fund, the promised £400m and the related £120m for the North East region are great and vital commitments to small business start-up and growth. This is as important as transport as these funds help to facilitate the growth of the new economy, doubly important with the decline in steel and related sectors. It should not be forgotten that these funds are linked to EU cash from Europe and they leverage significant private investment with over 800 new business supported in the North East alone in the last 6 years.

Does the North East need a mayor? If so, who should it be?

Who needs a Mayor? Well perhaps it’s not the idea we might have thought of ourselves but it is a good idea to have a real sharp focus for the North East and our participation in the Northern Powerhouse. Without strong business leadership in this initiative the North East might lose out to Manchester and Leeds rather than London. I’m not into politics and for that reason think we need a business leader like Jeremy Middleton.

Will the Northern Powerhouse be realised in the North East?

The Northern Powerhouse will in the end only mean anything to the North East if we start making it core to what we do and showing our strengths alongside the much bigger North West and Yorkshire.

Thanks Jonathan.