October 2022: regional growth update

We’re committed to ensuring your voice is heard in your region, and that real, practical change can be driven to boost productivity and prosperity. To do this, the CBI sits on business groups across Mayoral Combined Authorities (MCAs) and Local Enterprise Partnerships (LEPs) in the regions, making sure that businesses voice is central to their plans to drive growth across all English regions.

This monthly update gives the latest news from across the regions focused on the CBI Seize the Moment Priorities; to achieve net zero, driving innovation, putting business at the heart of UK trade policy shaping a more agile skills system, and instilling a culture of valuing health more as a nation.  

Latest headlines 

• Areas have been urged to 'go for growth' as Investment Zone applications open. The government has had discussions with 38 councils. The Department for Levelling Up, Housing and Communities (DLUHC) is now inviting expressions of interest from those initial places and all other Mayoral Combined Authorities or Upper Tier Local Authorities and Freeports across the UK by Friday 14 October. 
• Changes are expected to be made to the levelling up and regeneration bill to reflect a focus on ‘growth’. While elements enabling county deals is expected to remain, the ‘regeneration’ element could be set for an overhaul in light of the Chancellor’s recent statement.

Decarbonisation

• Midlands: A Nottinghamshire site has been selected to host the UK Atomic Energy Authority's prototype fusion power station in a move expected to create 600 jobs in the region, as well as thousands more in construction and the supply chain.
• Yorkshire and Humber: Humber 2030 Vision brochure will have been published. First output from the Humber Cluster Demonstrator. A collaboration between CBI – with input from about a dozen members (including Drax, Equinor, Phillips 66, Orsted, ABP) - and the Humber Energy Board, Marketing Humber and Humber Industrial Cluster Plan. £15bn of private sector investment planned across the region.
• London: Transport for London secured a long-term funding settlement, which was agreed with the Department for Transport to support transport services in the capital until 31 March 2024. This settlement contains support agreements for passenger revenue risk as well as capital and operating support. This funding settlement also allows TfL to continue to support jobs and businesses across the country through its supply chain.

Innovation

• North East: Teesside is to play a key role in a £20m Government competition to uncover hydrogen innovation. Transport Secretary Anne-Marie Trevelyan MP has visited the region to announce it will play host to the competition thanks to its status as the UK’s Hydrogen Transport Hub.
• South East: The Solent Local Enterprise Partnership is planning a range of free events and programmes to support the prosperity and growth of the region’s creative businesses. The LEP will host a series of events, with each focusing on a different portion of the creative sector, from digital technology, film and photography to crafts and fine arts. 
• East of England: An £11.4m new business hub has opened outside Norwich with ambitions to fulfil East Anglia's potential as a powerhouse food and drink producer. By offering business incubation facilities and innovation support, it aims to improve the proportion of home-grown food processed in the region, and retain more of its value in the local economy.

Trade

• North West: Estonian banking company LHV UK has agreed commercial terms to acquire Bank Norths SME lending business. Bank North, the Manchester based banking start up, announced last week it was winding down its operations after failing to secure a £30m new funding round to obtain a full banking license from the Bank of England, which would have allowed it to take deposit from retail sales.
• London: London and Partners (L&P) – the business growth and destination agency for London – has launched a Let’s Do London 2022 campaign to support the capital’s economic recovery across domestic and international audiences. This is the largest tourism campaign that London has ever seen, and forms part of the Mayor of London’s £10 million recovery fund.  
• Yorkshire and Humber: A global technology and business process outsourcing company is set to create 1,000 jobs in West Yorkshire. The announcement follows a trade mission to India by the region's mayor Tracy Brabin. The investment by Bangalore-headquartered Mphasis is expected to be worth tens of millions of pounds to the West Yorkshire economy.

Workforce

• South West: A new £50 million UK centre is to be built at Shrivenham in Oxfordshire to support the training of world-class cyber experts, domestically and internationally. The launch of the academy comes after the Department for Culture, Media and Sport revealed cyber-attacks, including espionage activity and ransomware infiltration, across Government has cost an estimated £100 million in the last year. 
• North East: A new employability programme has launched in the North East to help build skills and aid the region’s economic recovery. New Start is a paid placement programme, which provides career starter roles for people aged 25 and over. The programme is a partnership between housing providers in the North of Tyne region, Karbon Homes, Your Homes Newcastle, North Tyneside Council, Northumberland County Council, Changing Lives and Bernicia, with roles open to residents living in their households.
• London: A joint bid, facilitated by BusinessLDN and to be delivered in partnership with Federation of Small Businesses London (FSB), London Chamber of Commerce and Industry (LCCI), and Confederation of British Industry London (CBI) has been formally designated by the Department of Education to develop a local skills improvement plan for Greater London (LSIP). 

Health

• Midlands: Arden Cross has signed a Memorandum of Understanding (MOU) with both University Hospitals Birmingham (UHB) and the University of Warwick to create a new Medtech campus at its £3.2bn development in Solihull.
• South West: A new £58 million Vectura development on Bristol & Bath Science Park has been given the green light. It will enable Vectura to expand its operations and provide new career opportunities for research and development scientists and engineers in pharmaceutical and device development, as well as in manufacturing and laboratory services.
• Yorkshire and Humber: A new Healthtech Strategy has been launched in West Yorkshire Combined Authority alongside the West Yorkshire Health and Care Partnership’s (WY HCP) and Yorkshire and Humber Academic Health Science Network (Y&H AHSN) Innovation and Improvement Hub. The strategy, is set to improve regional population health and wealth through the development of a well-aligned, innovation driven Healthtech ecosystem.

How you can get involved

• A CBI Briefing on Investment Zones is available here. The CBI would like to hear your views on the investment zone proposals. Please contact Jake Morris for further information.
• If you would like more information about the CBI Humber Cluster Demonstrator please contact Alistair Craig.
• If you like further information about the Greater London LSIP, please contact Simon Dishman.

Contact the Regional Growth Team

• Mark Golstone – Head of Regional Policy
• Jake Morris – North East and Yorkshire and Humber
• Alex Guest -  North West
• Fleur Geernaert– South East and East of England
• Nicky Williams – South West
• Josh Male – Midlands
• Simon Dishman – London