Northern Powerhouse

According to a survey commissioned by the BBC in 2016, two-thirds of people in the North of England have either never heard of, or know nothing about, the Northern Powerhouse. When asked, some people thought it was a northern nightclub or an electricity company. Maybe that is typical of people's knowledge of many government policies but this is one which could have a major impact on people's life in this area so it is worth exploring. The project is at an early stage of development but it has some momentum and is likely to make progress over the next five years.

The proposal was introduced in a speech by the Chancellor George Osborne on 23 June 2014 at the Museum of Science and Industry in Manchester in which he said:

'The cities of the north are individually strong, but collectively not strong enough. The whole is less than the sum of its parts. So the powerhouse of London dominates more and more and that’s not healthy for our economy and it’s not good for our country. We need a Northern Powerhouse too. Not one city, but a collection of northern cities - sufficiently close to each other that combined they can take on the world.'

There is certainly an imbalance between London and the North. For example, one measure of regional economic output (GVA, gross value added), shows that per person, London's output is twice that of the North West. In one area of inner London, GVA per head is more than 10 times greater than that in the Wirral. People used to think that the internet might make physical location less important but it seems that, in a modern knowledge economy, businesses and entrepreneurs want to form clusters where they can spark off each other. Large cities such as London seem to provide the necessary infrastructure, entertainment and employment.

If we consider travel-to-work distance we find that the average commute of London workers is 40 miles. A circle of the same distance based on Manchester would take in Liverpool, Leeds and Sheffield and contain 10 million people, greater than Tokyo, New York or London but with more green space to enjoy. So the idea is to link up northern cities, not physically but with improved communications, transport links, co-ordination of local authorities and strategic planning so that together they can compete globally, as London does. The aspiration for the combined city is to have great jobs and businesses, fast and effective transport connections, strong universities, hospitals, colleges and schools alongside entertainment, green spaces, housing, culture and sport that makes for a good lifestyle.

The first issue is to link up the disparate local authorities and give them the power to plan and develop the necessary infrastructure. For example, it has been pointed out that the economy of Greater Manchester is bigger than Wales but it doesn’t have a single leader who can speak for the whole area. The government has made a start on this through agreements to elect city mayors in Manchester, Liverpool and Sheffield, with more being planned. Significant powers are being devolved to mayors and their Councils for transport, housing, business support, adult skills, children's services, etc. Manchester has been allocated £6 billion for a combined health and social care budget. Councils will be able to retain 100% of their business rates and raise additional funds for infrastructure projects. Of course our cities will still be separate but mayors can facilitate co-operation and there should be enough incentives and mutual benefits to overcome traditional rivalries and get them working together.

Another key issue is transport links. Journey times between our northern cities are far too long and need considerable planning and investment if a Northern Powerhouse is to become a reality. Planning has already started, as outlined in this government report, and a single body to co-ordinate transport requirements in the North has been established (Transport for the North). The aim is to reduce travel time from Manchester to Leeds (30 min), Sheffield (30 min) and Liverpool (20 min), which would compare favourably with transport across London. Manchester Airport and the ports at Liverpool and Hull will be key components for international links. Proposals for a HS3 high speed rail link connecting Liverpool, Manchester, Sheffield and Hull are at an early stage but plans for improving our motorways and rail links are more advanced and some work is already under way. Plans include a single ticketing system for all public transport in the area with contactless payment in the same way that Oyster, bank cards and phones already work in London.

All this will require careful planning and massive investment so the pace of development will depend on how well the economy is doing and how effectively local politicians can work together but it seems that there is a political will to make it happen. The Chancellor has already committed billions for infrastructure projects in the North and further funding was announced in the last Autumn Statement. For example, £10m a year to extend the work of Transport for the North, £150m to develop smart ticketing, £400m for a Northern Powerhouse Investment fund and £15m to support trade missions. Culcheth's location between Liverpool and Manchester makes it well placed to benefit from the extra facilities and prosperity that a Northern Powerhouse would bring but it will need to maintain the character of the village and its green belt so that it remains a desirable to place to live.