Partner Article

Northern Powerhouse investment in key industries could create 850k jobs in North

Up to 850k jobs could be created in the North by 2050 if investment in key industries and infrastructure is forthcoming, according to a landmark Northern Powerhouse report commissioned by Transport for the North.

The Northern Powerhouse Independent Economic Review, published today (Thursday), has also urged a ‘step-change’ in investment strategy for the North, along with greater collaboration between government and key partners, in order to realise the £97bn growth potential across key Northern industries.

Transport for the North, who are the new statutory body that will have authority for long term transport investment strategy in the North, have identified digital technologies, health innovation, energy and advanced manufacturing as the four industries which could provide the bedrock for economic prosperity and job creation across all regions in the North.

Currently, the region lags significantly behind the rest of the country and London in particular, producing £4,800 less GVA (Gross Value Added) per person per annum and over £22,000 less per person than London, despite containing twice as many people.

By focusing on the four key industries, which already account directly for 30% of the North’s jobs and 35% of its GVA, the review outlines that the North could make major head roads in bridging the economic gap with the South.

John Cridland, the Chair of Transport for the North, believes that provided the ‘right investment and focus’ is directed at these key capabilities, the country as a whole could also benefit to the tune of an extra 1.56m jobs.

He said: “Close to a million (850,000) of these will be directly attributable to the success of the Northern Powerhouse and we would expect productivity (GVA) to be 15% higher than currently which, in itself would represent a major step-change for the North.”

At the heart of the report’s predictions, which will provide a roadmap for the future development of the Northern Powerhouse, is the need to focus on education, logistics and financial and professional services, to help shape the skills and prospects of the future workforce.

John Cridland added: “This Review will be fundamental for future planning. Central to powering the North’s future economy will be an efficient high capacity transport network capable of fully mobilising the workforce between the North’s key economic heartlands.

“The Review clearly identifies that such a network must be tailored and shaped to recognise emerging and sustainable strengths whilst acknowledging that many Northern jobs are in other service sector businesses on every Northern high street.

“In addition to this, improved education will also be vital in northern schools to give young people the chance to go for better jobs using the improved transport links we are delivering.”

However, the review warns that a significant realignment of current investment strategies and collaborations between key partners, the Government and national agencies is needed in order to realise these ambitions.

In particular, transformational change will only come about if key road, infrastructure and rail routes are greenlit, promoting greater collaboration between Northern towns and cities, and propelling the region into a global player.

Commenting on today’s review, Northern Powerhouse Minister James Wharton said: “We are committed to bringing together the great cities and towns of the North to become a powerhouse for our economy.

“This Review shows how this could create hundreds of thousands of jobs and deliver a multibillion-pound boost to the economy right across the Northern Powerhouse.”

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