Business Hour
David Fearnhead talks to Seneca’s Business Development Director, and Ribble Valley local, Ian Battersby to gain some insight into the ‘Northern Powerhouse’
Talk of a Northern Powerhouse has been around for quite a while but for most of us it’s little more than a favoured catchphrase of politicians. Regional investment and corporate finance specialists, Seneca Partners have provided over £200 million of capital to growing companies in the north of the UK within the last five years and are very much at the economic heart of the ‘Northern Powerhouse’.
Giving his view, Business Development Director Ian Battersby, says: “To give it some context, it is worth mapping out a few facts – the north is home to 15 million people and over one million private sector businesses within a geographical catchment from Liverpool to Hull and Sheffield to Newcastle which, if it was an independent country, would rank within the top half dozen economies in Europe.
With seven international airports, 12 major ports and 20 universities, the region is responsible for 25 per cent of the UK’s total manufacturing output. Of course this is not all new. The north was the birthplace of the Industrial Revolution and has avery rich tradition of innovation and entrepreneurship and has long been at the leading edge of discovery in technology and materials. The aforementioned universities together with the much vaunted Bio-Hub at Manchester Science Park continue to attract interest on a global scale. Foreign investors are responding too and 2015/16 saw inward investment rise by almost 25 per cent, much faster than the national average.
“It sometimes appears that as a region, we have to fight to have our case heard when that might not necessarily be the case elsewhere and that does provoke an element of cynicism. However, the overriding ambition for Northern Powerhouse was set out back in 2014 which, at headline level, exists to increase the impact and contribution of the north of England to the UK economy. A rebalancing exercise it might be said, with a view that the economy of the north could be some £100 billion larger within three decades.”
“But from where we all stand in the provinces, there needs to be conviction shown by Westminster that there is a genuine desire to make this happen. Becoming submerged in a quagmire of political rhetoric is not an option and with the UK facing tough and protracted negotiations of its’ Brexit deal this is the lingering spectre for those who have heard it all before. Being blunt though, the UK needs this to happen, not just northerners.”
“Without doubt, one of the largest and most critical issues is how to improve the level of productivity, which is well below London for example, and a staggering 40 per cent lower than some of our comparable European counterparts.”
“Transport infrastructure would be the top answer for most people in identifying key causes. The traffic snarl ups in London are notorious but travelling times when using the motorway network of the north and local rail networks is borderline ‘farcical’. Manchester and Sheffield are 40 miles apart and yet they are reputedly the worst connected cities of their size anywhere in Europe.”
“Another factor is the need to address the skills gap. Far fewer people are known to be educated to degree level in the north when compared to their peers in the south and this clearly needs to change if the opportunity to continue to grow and develop our technology, biotech and life sciences talent is to be optimised. It is estimated that the region loses 30,000 graduates a year when the reality needs to be net migration of graduates into the region particularly in science and technology.”
“The third and possibly most contentious issue is the devolution of power and finance to cities and regions where local skills and transport challenges are, in theory, better understood. The success of this undoubtedly hinges on a cohesive approach across the region rather than the development of fiefdoms and the Northern Powerhouse leaders will surely have this uppermost in their thoughts. Dealing with the challenges of the health budget at local level and financially strapped local authorities make the task no easier.”
“The underlying fear on the ground, and not necessarily confined to Northern Powerhouse, is the upcoming Brexit effect and whether the UK’s bigger picture starts to overwhelm the support and funding for what is developing in our region. The argument that the country needs this to progress more than ever in a post Brexit world shouldn’t be lost on anybody and the weight of support from the UK and international corporates who are committing themselves to the region, suggests momentum will be maintained.”
“The Ribble Valley is situated within a region rich in resources, resilience and with a will to succeed. With genuinely world-class businesses at its heart, it needs and deserves to be embraced.”
