Member Article

North East Northern Powerhouse insight: Graham Purvis, Robson Laidler

In an ongoing series, Jamie Hardesty is talking to North East business leaders in an attempt to understand the region’s feelings towards the government’s Northern Powerhouse initiative.

The next regional figurehead to take part in our investigation is Graham Purvis, a director at Jesmond-based Robson Laidler accountants and business advisors.

What does the Northern Powerhouse mean to you?

In principle the objectives are laudable – to create a Northern region with its own economic hub and identity. Unfortunately the timescale for action in implementation is somewhere between a sloth and a glacier and there is a danger that any momentum slowly saps away.

Are there signs of the Northern Powerhouse starting to bear fruit in the region?

Call me parochial if you want but my interpretation of the Northern Powerhouse initiative is that it really should be renamed the Trans-Pennine Powerhouse. There is a micro-economy to the true North of the Leeds/Manchester Canal, which continues to be short-changed by central government and I do not feel personally engaged, as yet, in this great ‘Northern Powerhouse’ sound bite.

The North East as a region must immerse itself in the project and rally behind our own agenda points, which should be addressed as part of the overall Northern Powerhouse initiative. If we don’t do that we will remain on the periphery and simply ride on the coat-tails of the North-West.

Has the government done enough to convince you of its commitment to Osborne’s vision?

In my view the rhetoric still outweighs any measurable action in terms of carrying through on his vision. We shouldn’t rely on politicians to drive this through; business leaders in the region should be at the forefront.

Transport improvement is intrinsic to the Northern Powerhouse. Do you believe that spending billions of infrastructure will improve Northern productivity?

I remain to be convinced on that one. The continued success of The Port of Tyne will be influenced by improving freight road transport links to the North East.

In that regard the proposed road improvements to the A1 to give us a continuous motorway standard between London and Newcastle is of course to be welcomed.

However the announcement that only up to Ellingham will be modern dual carriageway standard is a little underwhelming. Perhaps they are planning to rebuild Hadrian’s Wall as the next step. Any options to upgrade the A69 to Carlisle are mothballed until after 2025 as are any improvements to the A66.

With regards to rail improvements; is knocking 35 minutes off a train journey from the North East to Manchester really going to have a significant impact? Rail journeys within the North East generally are truly depressing so maybe more money spent upgrading “non headline” routes would be better use of the funds.

At the end of the day the government needs to put its money where its mouth is; at the moment the North East seems to be lagging far behind other parts of the country.

Are there any other areas which you believe money should be spent on, ahead of transport?

Certainly improving connectivity between the North’s cities is at the forefront of the initiative.

However in this increasingly digital age a commitment to establish and maintain superfast internet connectivity and developed mobile coverage throughout the region in the short term would be welcomed. This would then lead to potentially less commuting and less monies needing to be spent on transport infrastructure.

Does the North East need a mayor? If so, who should it be?

Yes I think so. Someone who is apolitical – someone who is seen as the focal point to put forward North East interests – someone who can galvanise a co-ordinated approach to secure our collaboration in the Northern Powerhouse project and ensure our voices are heard. Who that is? I have no idea.

Will the Northern Powerhouse be realised in the North East?

The recent news that the devolution deal for the North East, which is part of the Powerhouse programme, has moved forward is encouraging. The proposed mayoral authority under devolution will control a £30m a year investment fund, have a say over Whitehall and EU expenditure in the region, and have powers over local transport, economic development, training and planning.

However £30m is a very small amount compared to national investment levels and, while giving a short term headline, is nowhere near enough to redress the historic imbalance of investment in the North East

In addition Gateshead’s rejection of the deal is symptomatic of the core problems. The success of the entire initiative relies on the collaboration of the “Northern” region. There is a very real danger that “localist” regional views derail the whole process.

Thanks Graham.

Looking to promote your product/service to SME businesses in your region? Find out how Bdaily can help →