Humber region needs to act now to become "significant player" in Northern Powerhouse

In order to become a major player in the Northern Powerhouse, the Humber region must close the productivity gap with the rest of the UK economy, according to a new research report by the University of Hull’s Logistics Institute.

‘The State of the Humber Economy’ white paper reveals that the region is below the national average related to economic prosperity, productivity, entrepreneurship and innovation.

The report shows that the economic prosperity of the region, measured by Gross Value Added per head, is still at almost the same level as it was in 2009 before the economic crash, while the average annual growth rate is less than half the national average.

Productivity per worker is also lower than the national average, and output from the manufacturing sector has fallen below 2009 levels. Employment continues to be dominated by elementary and related occupations, with managerial and professional occupations making up a much smaller proportion of the labour market than the regional and national average.

The Humber region also falls behind the national average when it comes to the formation and growth of small and medium sized enterprises, and Hull is in the bottom 10 cities in the UK for startups and patents.

However, the report claims that the region has many core strengths and opportunities and should focus on potential growth sectors, such as the Humber port complex and its position as a gateway for Europe, the growing renewable energy sector and the investment by Siemens in offshore wind.

Professor Amar Ramudhin, director of the Logistics Institute and co-author of the report, said: “The research shows that the Humber is below the national average on most key metrics of economic competitiveness.

“Whilst this may not be surprising to many, it does highlight the urgent need for a concerted strategy and quick actions to reverse current trends.

“Serious thought needs to be given to how we can increase productivity at the local and regional level to stop the gap widening with the rest of the UK.

“The objective of this report is to stimulate thinking and co-operation about the way forward among local stakeholders and encourage them to come together.

“There are tremendous opportunities to build a more prosperous future for the region but we need to do it now if we are to realise the region’s potential and be a significant player in a Northern Powerhouse.”

Despite these opportunities, the report claims that the Humber faces some “huge challenges” and calls for a skills strategy to address social mobility issues and encourage more people to stay in the region and “start their own businesses for the new economy”.

Ten recommendations were given for transforming the Humber economy, which include:

• Develop the Humber into an integrated, multi-modal freight and passenger Gateway and work with Liverpool to develop efficient logistics services to serve businesses along the M62 corridor.
• Develop a strategy for a port-based economy that will attract and support existing and/or new businesses to the Humber.
• Develop a renewable energy sector to position the Humber as a world-class leader in the industry.
• Continue to support and develop the chemical and processing industry.
• Develop a transportation and infrastructure plan to ensure initiatives that support growth.

The report concluded: “The Northern Powerhouse presents a unique opportunity for the Humber to shape its future. It should agree on a vision and a mission statement of what the Humber is about, speak with a common voice and elevate its game plan to shine and find its rightful place in the Northern Powerhouse on behalf of the UK.”

Former Deputy Prime Minister Lord Prescott said: “This report is saying here are the problems, we have great potential but we are never going to realise that potential unless we get together.

“All the different stakeholder groups need to decide a way forward. We have got to take the essential steps now. We need a big push to agree the short and long-term priorities for the Humber region.”

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