News

01.06.16

Northern Powerhouse investment should focus on biggest cities – Centre for Cities

Strengthening the economies of key northern cities will be more important than large-scale investment in areas like rail, think tank Centre for Cities has said in a new report.

The report compares conditions in the north of England to that of the Rhine-Ruhr and Randstad regions of Germany and the Netherlands, which the government has cited as models for the Northern Powerhouse. The average productivity of the Rhine-Ruhr and Randstad in 2011 was £60,169 for every worker, compared to £42,816 in the north of England.

It says that most of these regions’ economic activity is concentrated in their major cities such as Amsterdam and Bonn, and recommends that Northern Powerhouse investment be focused on the economy of cities by increasing the density of office space and the education level of workers. This will allow businesses to benefit from sharing infrastructure and exchanging ideas, as well as a greater pool of workers.

Alexandra Jones, chief executive of Centre for Cities, said: “Instead of spreading limited monies and political focus equally across the whole region, national and local policy-makers should concentrate most resources on addressing the economic challenges that big Northern cities and their city regions face, as these have greatest potential to deliver benefits for the North as a whole.”

The report says that increasing city density would cause problems such as higher housing costs and increased congestion, but that this could be mitigated through measures such as congestion charges.

It also recommends that decisions about economic policy are made at the lowest level possible in order to ensure that they are attuned to local needs.

Skills, transport and planning decisions should be made at the city-region level by the new metro mayors instead of by pan-Northern bodies.

It says that proposals to devolve power over buses in the Buses Bill should be expanded so that Transport for London style bodies have responsibility for all public transport. They would then be able to control the provision of services, integrate them with other policy areas, negotiate long-term funding areas, introduce smart ticketing across different networks and raise funds for investment.

The latest edition of PSE features an article by Luke Raikes, a research fellow at IPRR North, on how metro mayors can better use transport policy.

Mike Bothamley, head of real estate at DAC Beachcroft, which sponsored the report, said: “The report gives a tangible direction for the evolution of the Northern Powerhouse concept. While supporting regional collaboration it clearly highlights the importance of local action in the drive for sustainable growth and recommends practical actions for planning and development.”

A survey of delegates at the Northern Powerhouse International conference found they rated investment much more highly than political devolution as a means of building the Powerhouse.

A recent report by the Joseph Rowntree Foundation warned that some of the LEPs in the Northern Powerhouse which have seen the greatest growth in prosperity have not seen a similar growth in economic inclusion.

Have you got a story to tell? Would you like to become a PSE columnist? If so, click here.

 

Comments

There are no comments. Why not be the first?

Add your comment

related

public sector executive tv

more videos >

latest news

View all News

comment

Peter Kyle MP: It’s time to say thank you this Public Service Day

21/06/2019Peter Kyle MP: It’s time to say thank you this Public Service Day

Taking time to say thank you is one of the hidden pillars of a society. Bei... more >
How community-led initiatives can help save the housing shortage

19/06/2019How community-led initiatives can help save the housing shortage

Tom Chance, director at the National Community Land Trust Network, argues t... more >

editor's comment

25/10/2017Take a moment to celebrate

Devolution, restructuring and widespread service reform: from a journalist’s perspective, it’s never been a more exciting time to report on the public sector. That’s why I could not be more thrilled to be taking over the reins at PSE at this key juncture. There could not be a feature that more perfectly encapsulates this feeling of imminent change than the article James Palmer, mayor of Cambridgeshire and Peterborough, has penned for us on p28. In it, he highlights... read more >

last word

Prevention: Investing for the future

Prevention: Investing for the future

Rob Whiteman, CEO at the Chartered Institute of Public Finance (CIPFA), discusses the benefits of long-term preventative investment. Rising demand, reducing resource – this has been the r more > more last word articles >

interviews

Artificial intelligence: the devil is in the data

17/12/2018Artificial intelligence: the devil is in the data

It’s no secret that the public sector and its service providers need ... more >

the raven's daily blog

Cleaner, greener, safer media: Increased ROI, decreased carbon

23/06/2020Cleaner, greener, safer media: Increased ROI, decreased carbon

Evolution is crucial in any business and Public Sector Executive is no different. Long before Covid-19 even became a thought in the back of our minds, the team at PS... more >
read more blog posts from 'the raven' >

public sector events

events calendar

back

August 2020

forward
mon tue wed thu fri sat sun
27 28 29 30 31 1 2
3 4 5 6 7 8 9
10 11 12 13 14 15 16
17 18 19 20 21 22 23
24 25 26 27 28 29 30
31 1 2 3 4 5 6

featured articles

View all News