Devolution vital to North’s economic success, says former civil service head

Devolution and “great leadership” are vital to the future economic success of the North, according to the former head of the civil service.

Delivering a keynote speech at the UK Northern Powerhouse International Conference and Exhibition in Manchester this morning, Lord Kerslake said he believes the leadership needed to drive the Northern Powerhouse must come from within the region.

The UK Northern Powerhouse Advisory board chairman also explained how “fiscal devolution” will be key to the future of the North, which should not let recent devolution “setbacks” in some areas stall progress.

He said there needs to be a “major shift” of power away from the capital.

Discussing the events of the last 12 months, including the EU Referendum and its Brexit outcome, Lord Kerslake said: “The Northern Powerhouse is an idea that is here to stay. It has managed to survive the buffeting of the last year.

“The key questions for the Northern Powerhouse are where next and who should be providing the leadership?”

He also told delegates that the project is a “marathon” that would deliver change “over many years”.

During the last 12 months, he explained, it had become “increasingly clear that a successful Northern Powerhouse is essential to the country if it is going to tackle the deep structural economic problems we face and create a more unified country”.

Lord Kerslake said he is confident the North has an enormous opportunity to attract new foreign investment, increase exports and better share the wealth created.

He added: “The strongest leadership for the next stage of the Northern Powerhouse needs to come from the North itself.”

Calling on businesses, universities, local authorities and voluntary sector organisations to provide that leadership, he concluded: “How the North can take power into its own hands is the next part of the Northern Powerhouse.”

Elsewhere, Leeds City Council leader Judith Blake said there is a growing mood of cooperation in the North, with local authorities, universities and health services today working more closely together.

The Northern Powerhouse, she said “is not just about shiny fast trains”, adding that there has been too much of an emphasis on hard infrastructure projects.

Manchester City Council Leader Sir Richard Leese, a member of the Northern Powerhouse Partnership, told the conference that the North has already shown strong leadership.

Much of the thinking behind the initiative, he said, came from within the region.

Speaking further, Sir Richard said that while the region is facing some tough challenges, progress has been made on several fronts, including HS2 and HS3.

He also agreed with Lord Kerslake in that the Northern Powerhouse project represents a “long haul”.