There is a chasm between the prosperity of our UK regions. But improving regional productivity could add £200bn to our economy over the next decade, lifting pay packets and raising living standards. By empowering local investment and decision-making, every region in the UK can benefit from national prosperity.
That’s why we’re calling on the government to enable regions to take control of their growth – through not only a guiding strategy tailored to each region’s needs, but also the devolved power and funding to make a tangible difference.
Put in place clear Local Industrial Strategies by early 2020
Devolve decision-making power down to the right local level
Develop local funding that is simple, easy to access, agile and effective
The most productive area of the UK remains almost three times more productive than the least. And this is having an impact on our international competitiveness too: more than half of UK cities are among the 25% least productive in Europe. The UK remains the most centralised nation in the G7, which may go some way to explaining why our productivity lags behind.
Each region has its own priorities, including historical investment, employment opportunities, education, transport and exports. Tailored local strategies with access to the right funding, and the ability for areas to make local decisions, will make a real difference in closing the productivity gap.
Local leaders, working with their wider communities, are best-placed to recognise an area’s strengths and development needs. Mayoral combined authorities provide long-term certainty for business investment and champion their region’s interests, nationally and internationally. But to guarantee no region falls behind, a long-promised framework for devolved power needs to be published. This must include clarity on future deals across England, but also on how areas can secure meaningful devolution and deliver growth.
"We can achieve shared prosperity across the UK by closing the regional productivity gap. To do so, places must be in a strong position to deliver upon economic strategies including having appropriate powers, adequate funding and democratic accountability."
Matthew Fell, Chief UK Policy DirectorThe UK has the widest regional disparities in living standards of any country in the EU, so the CBI is looking into why these differences exist and what we can do about them.
of UK cities are performing below the European average
the productivity gap between London and any other nation or region in the UK
the estimated productivity gap in the Northern Powerhouse region
The CBI campaigns tirelessly on behalf of our members so that business creates prosperity for all. Learn more about the work we do and the impact we are making on this issue.
CBI launch Unlocking Regional Growth report
CBI's response to the government's modern Industrial Strategy
New review ensures Local Enterprise Partnerships are fit for purpose
CBI welcomes introduction of independent Industrial Strategy Council
CBI launch member consultation on future devolution framework
West Midlands and Greater Manchester launch the UK’s first local industrial strategies
Strengthening London's business environment
First wave of local industrial strategies marks a positive start to a place-based economic approach
Powering up places: unlocking regional growth through devolution
Join the CBI
Our members are our mandate, and the reason we’re the most influential business organisation in the UK. Join the voice of business, and help us close the prosperity chasm between different UK regions.
Find out moreHave your say
Is your business impacted by regional imbalances in the UK economy? Are your regional bodies working hard for your business? Share your views and help strengthen our calls to government.
Get involvedMake a difference
This campaign is led by the CBI's Regional Growth team.
Contact Jim Hubbard, Head of Regional Policy, to find out how you can play your part in unlocking regional growth.
