Columnist

Raising the bar to boost North East growth

I was privileged as one of 50 senior North East commercial sector figures to have taken part in the NET x Fairstone roundtable events that led to the publication of the Raising the bar: a blueprint to supercharge North East growth white paper.

The paper identified five headline points to the North East Combined Authority in support of devolution to achieve growth and increase jobs.

They were:

·      The creation of an independent investment ladder to provide early stage, scale-up and mature businesses with easier access to capital

·      Greater support in existing standout businesses, rapidly expanding SMEs and university spin-outs, and a renewed focus on high-value employment over job volume

·      Strengthened ties between industry and education to equip learners for the jobs of tomorrow

·      Transport improvements to bolster inter-regional, domestic and global connectivity

·      A refreshed commercial narrative that showcases the North East’s investment opportunities domestically and internationally

I found this summation very close to my activities at JK Property Consultants in regeneration (points three to five) and in my voluntary role as chair of the North East Business Innovation Centre (points one to three).

Achieving economic growth for the region is crucial, with the attraction of foreign direct investment and the encouragement of start-up and scale-up businesses equally important. 

As a region, we have done well with foreign direct investment, but with greater global competition, the uncertainty created by tariffs and the instability through conflict this will be much harder.

Progress has been achieved according to law firm Brabners’ Making Places Work report.

The North East is the only northern region to see faster job growth than the rest of the country (five per cent), and features two of the highest performing local authorities overall – Gateshead and North Tyneside.

In contrast, child poverty has increased in every single local authority, and has increased the most in areas where economic growth has been strongest, including Manchester and Liverpool, suggesting the benefits of growing prosperity have not been equally shared.

Iain Gamble, Brabners’ partner said: “The story is not uniformly positive and offers some clear lessons for future projects. 

“Rising child poverty in places with improving economic data is a sure sign that not all local people are benefiting.”

Paul McEldon, chief executive at the North East Business Innovation Centre points out “the obvious link to child poverty is that self-employment is very often the only viable option for some people to get into employment”. 

Deprivation is more common in areas with low economic activity and higher unemployment, and North East mayor Kim McGuinness has made tackling child poverty one of her main priorities. 

It is a multi‑layered and long‑term objective, targeting both immediate family needs and structural barriers, and has launched some of the most ambitious anti‑poverty initiatives in England. 

They include a £28.6 million child poverty action plan; creation of the child poverty reduction unit; employment and childcare support; affordable public transport; leveraging procurement to reduce poverty; and mobilising local charities and community giving.

Government consultation on speeding up the planning process is nearing its close. 

The revision of the national planning policy framework has useful points attractive to housebuilders. 

There is a balance needed on planning gain, viability and speeding delivery to ensure a steady supply of land and to encourage SME builders to return to the market.

In this region, viability is key to increasing activity. 

While the housing market is at a low part of the economic cycle, preparation now is essential. 

Addressing housing will improve the activities of housing associations and the private sector, thus accelerating the alleviation of poverty.

I have learned over many years that economic growth comes with an objective to improve wellbeing – especially that of vulnerable families. 

To achieve such will require greater collaboration at pace.

Kevan Carrick is co-founder and owner of JK Property Consultants LLP. He is a member of the RICS Land & Natural Resources Professional Group Panel that consulted on the National Planning Policy Framework, and is chair of the North East Business and Innovation Centre (BIC).

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