Despite a new Prime Minister and government in place an air of uncertainty continues with the prospect of no-deal, a general election or both on the horizon.
That’s not to say government hasn’t been ‘turbocharging the regions’ with speculation they’re gearing up for an election. Boris Johnson soon after becoming premier announced his support for Northern Powerhouse Rail, with details to be agreed later this year after the HS2 review. In addition, the new Prime Minister is to boost the towns fund by £3.6bn (up from £1.6bn announced in March).
Read Hannah Richmond’s analysis of what the new cabinet will mean to regional growth here.
We’ve wasted no time in introducing ourselves to the new ministerial team including MHCLG Secretary of State Robert Jenrick, BEIS Secretary Andrea Leadsom and Northern Powerhouse and Local Growth Minister Jake Berry. Deputy Director-General, Josh Hardie met with Andrea Leadsom last week, and we aim to add a long list of ministerial meetings to diaries soon.
Industrial strategy
It’s too early to say what the new government’s approach to industrial strategy will be, and the CBI will continue finding opportunities to champion what’s working, while at the same time identifying opportunities for increased momentum and focus. We recently organised regional round tables on future of mobility and clean growth.
Development of local industrial strategies across England continues, and we remain closely engaged. Following on-going engagement, we welcomed Greater Manchester’s and West of England’s local industrial strategies as well as the four strategies covering the OxCam Arc including the first three strategies without elected mayors. If you have interest in becoming involved please contact a member of the team including Hannah Richmond – North, Mark Corbett – Midlands, James Sloan – South West and East of England or myself.
Regional imbalance
Last week, the CBI submitted evidence to the Treasury Select Committee inquiry on regional imbalances reinforcing the need to focus on key drivers or productivity and availability of robust data to help address regional imbalances. Its former Chair, Nicky Morgan, has left following her appointment as Secretary of State for DCMS, and the next Chair will be chosen the second week of September.
During the Conservative leadership contest, the ‘Power Up the North’ campaign gained traction including the launch of the One Powerhouse consortium working to address regional inequality through spatial planning across England’s ‘mega-regions’ as well as the devolved nations. A few years ago, following government scrapping Regional Development Agencies (RDAs), this approach would have been unthinkable. I doubt ‘mega-regions’ will be adopted overnight, but what it demonstrates is a renewed sense that more work is needed to level up places across the UK.
As does the launch of the UK2070 Commission’s report Fairer and Stronger: Rebalancing the UK economy, where the CBI has been represented on the commission by Anna Leach, Deputy Chief Economist and where I’ve recently taken on the post to free up some of Anna’s time. The report compared the North-South divide to that between East-West Germany following the fall of the Berlin Wall. Its work continues with a report to be published later this autumn and early next year.
Devolving power
The CBI was quoted reacting to Lord Michael Heseltine’s latest calls for devolved powers to Mayors in the Financial Times and elsewhere. Our own report led by Hannah Richmond, based on insights from members, explores what is needed to reignite regions is due to be published in the coming weeks. The aim is to close the systemic productivity gap found within and between regions. The report will reiterate the importance of government publishing a clear devolution framework for England, preparing Westminster and Whitehall for devolution alongside initiatives to ensure a larger proportion of the country is covered by devolution deals.
If you have questions or would like to become more closely involved in any of the above, please let me know.