Govt to unveil economic Northern growth strategy in spring
The commitment of £45bn for Northern Powerhouse Rail was just the start, with an economic plan leaning into the region’s strengths in clean energy, advanced manufacturing, life sciences, and more to be detailed within a few months.
The Northern Growth Strategy: Case for change policy paper, published Wednesday, noted that the North’s productivity was 10% lower than the UK average in 2023, and 25% lower than London and the South East.
Raising productivity figures in Greater Manchester, Liverpool City Region, South Yorkshire, West Yorkshire, and the North East to the UK average would bring in £40bn in additional GVA a year, the paper contends. This would, in turn, translate into £15bn in additional annual tax revenue.
To do this, the government argued that it needs to improve three things: density and connectivity in the region, business investment figures, and educational opportunities and graduate retention.
An economic plan to accomplish this will be published in the spring. Tom Riordan, the government’s envoy for Northern growth, will lead the delivery of this strategy.
The North East will receive a special highlight in the work, according to the policy paper.
“The scale of the North East’s potential and its distinct geography warrant a separate focus,” the paper reads. It promises support for unlocking clean energy industry opportunities along the east coast, supporting reopening of the Leamside Line, regenerating Newcastle city centre, and strengthening the region’s relationship with Scotland.
Northern Powerhouse Rail is at the heart of the government’s plans to improve productivity in the region.
“It is self-evident to anyone who has lived, worked or visited that transport is the key barrier to improving the productivity of our economy,” Riordan wrote on LinkedIn. “It’s just too hard to get around between our towns and cities.”
To those sceptical of the long-promised NPR becoming reality, Riordan countered:
“This time (more than any other time 🙂) we can get it right. First, this is a genuine partnership between an elected government and elected mayors and council leaders – a collective endeavour. Today’s announcement is better because the North has shaped it.
“Second, we have a capped long term commitment for sequenced priorities that backs the words with funding.
“And third… it is part of an evidence-based growth strategy designed to benefit the whole of the North. Thanks to everyone involved for your brilliant support, and looking forward to working together with Westminster, Whitehall and the North to make sure this makes a lasting difference.”
The policy paper provides additional detail about NPR’s delivery, which is outlined below.
The timeline for NPR delivery has been set out in the government’s Northern Growth Strategy policy paper. Credit: via HM Treasury
First phase, to be delivered in the 2030s:
- Electrification and upgrades to the Leeds, Sheffield, and York rail corridors
- Improving Leeds station and releasing adjacent development sites
- Developing business case for Bradford Station (decision by summer)
- York station masterplan redesign
- Improve capacity at Sheffield
- Finalise business case for proposed Leamside reopening with a look at improving connections to Sunderland
Second phase, to have work start in the 2030s and beyond:
- New route between Liverpool and Manchester via Manchester Airport and Warrington Bank Quay Low Level (development work has been fully funded)
- New station for Manchester Piccadilly – details as to whether this is underground or above ground still to be determined
- Liverpool Central improvements and assessment of possible gateway stations in the city region. Expect consultation in due course regarding the full detailed route between Liverpool and Warrington
- Look into potential of extending NPR beyond Chester to North Wales
Third phase
- Look at improving cross-Pennine links over and above Transpennine Route Upgrade
- Birmingham and Manchester line that can support wider North West and Scotland connections
