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Is the new government neglecting the North East’s role in the Northern Powerhouse?

This year we’ve witnessed British politics relentlessly divide and reinvent itself in an unprecedented fashion.

Simply put, Britain’s decision to leave the European Union has shaken us to our core. The fierce eruption of change which exploded onto our political landscape has cast a thick, clouding ash of uncertainty over the business world.

What Is to Be Done? Burning Questions of May

Theresa May replaced David Cameron. A swift Cabinet reshuffle ensued. Hello new faces, new ideas, new direction.

With May’s initial few weeks in office engulfed in the Leave question, last week we saw attentions begin to turn inward.

The question of ‘What to do about the British economy?’ seemed to hit centre stage. The answer? ‘An economy that works for everyone with industrial strategy at heart’, more on this to come.

As a purveyor of business news, I’ve found the last few weeks to be quite frustrating - simply because the government’s economic approach has been unclear.

Would it be a case of picking up where Cameron/Osborne left off? Would we be moving in a different direction? What about this Northern Powerhouse we keep hearing of?

I believe it’s fair to say that the North East business community is very much in a state of flux at present. Uncertainty directly impacts outlook. A ‘let’s just wait and see’ mood has fallen on enterprise, understandably so of course - unprecedented change will do that!

May’s predecessors believed the key to growth lay in rebalancing the economy, putting the onus on building a more productive North and in turn, reducing the reliance on the South East.

As someone who has spent much of the year gathering business opinion towards the Northern Powerhouse, I must admit - I’ve been especially eager to learn of its fate.

‘May pulls plug on Northern Powerhouse’ read an eye-catching headline in the Financial Times last week. Cue the alarm bells.

Interestingly, the article headline has since changed. ‘Theresa May shifts focus from Northern Powerhouse’ reads the amended version.

So whilst the Northern Powerhouse, in layman’s terms, is still a thing - it seems the initiative falls under May’s wider industrial strategy vision - more of a cog in the machine, demoted from being the overall focus.

To be clear, May has not ‘pulled the plug’ on the Powerhouse. Certainly not yet anyway.

In fact, new Northern Powerhouse minister Andrew Percy and Commercial Secretary to the Treasury Lord O’Neill toured Northern cities a fortnight ago, a demonstration of the government attempting to reaffirm its commitment to building a Northern Powerhouse.

North by North East

My gripe, however, is that the North East hasn’t featured much in the rhetoric or actions of the new government when it comes to the Powerhouse.

Was the North East included in this journey of reaffirmation? It was not.

Granted, Greater Manchester has always been at the forefront of plans and yes, the new minister hails from Yorkshire but if the tour was designed to be symbolic, it’s disappointing that the symbol failed to extend to us.

In fact, I’m not seeing the North East feature much at all in the Northern Powerhouse narrative. Yorkshire, for instance, seems a lot more active.

Amidst the tour, six new Humber growth projects were signed by Mr Percy (pictured above) whilst the region has also been active in urging the government to commit to boosting the region. Indeed Yorkshire looks a better bet to catching the North West up than the North East does.

The sticking point for the region is of course the lack of progression in regards to Local Authorities. Tees Valley is heading in the right direction but the North East is floundering somewhat.

A lack of agreeance is stifling progression. How can the North East play a role in the Powerhouse when it refuses to get on board?

Perhaps the new government is neglecting the North East’s role in the Northern Powerhouse although, of course, it is early days and there lies much room for greater activity.

Until the region can confirm devolved local powers it seems we’ll always be on the periphery of the wider initiative.

For businesses in the region wishing to better themselves and wanting to be part of a brand that attracts greater investment, ultimately generating greater prosperity, the disappointing reality is that the North East is currently failing to realise its potential.

Sadly, this isn’t the first time we’ve heard this.

What do you think? Have your say in our comments section below.

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