JUST seven jobs were created in the North-East by overseas firms attracted by the Olympics – despite Government’s boasts that the whole country would benefit.
In stark contrast, London gained almost 15,000 jobs, almost half the total number believed to have been generated by the Olympics buzz.
An analysis of the investment boost from last year’s ‘Summer of Sport’ has revealed an extraordinary disparity in the way the rewards were spread across the country.
In total, the “once in a generation opportunity” to showcase the UK to foreign companies is believed to have triggered investment worth £2.5bn.
Around 31,000 jobs were created, after a series of “business summits” were held in London, during the Games, some hosted by David Cameron.
Earlier this month, trade minister Lord Green hailed their success, saying: “Britain has retained its position as the leading destination for foreign direct investment in Europe.”
In the run-up to the Games – as controversy raged about their £9bn price tag – the prime minister pledged that the whole country, not just London, would benefit.
But a breakdown of those benefits – seen by The Northern Echo – shows the capital was by far the biggest winner, with the North-East in the slow lane.
Of the £2.5bn investment, just over £1bn – 40 per cent – flowed to London with the North-East gaining just £19.43m (0.8 per cent) and Yorkshire £59.34m (2.4 per cent).
The jobs divide is just as depressing, with the North-East gaining just 0.02 per cent and Yorkshire 0.5 per cent (150 jobs).
Tom Blenkinsop, the Middlesbrough South and East Cleveland MP, said he still believed the Olympics had had the potential to deliver, for all parts of the country.
But he urged the Government to target other investment to the North-East, to make up for the failure of the Olympics to provide that boost.
Mr Blenkinsop said: “This Prime Minister should take this opportunity to re-establish school sports partnership funding and target Olympic legacy funding in the North East.
“That would compensate for the total lack of regional growth and jobs for the North-East that he promised.”
The statistics underline the difficulty for the Coalition in delivering on its pledge to “rebalance the economy” away from London – a gap many believe to be widening further.
However, they show that some other regions did benefit, in particular the South-West (investment £716m, jobs 12,550) and the West Midlands (£410m, jobs 1,160).
Scotland, while recording modest benefits compared with London, did much better than this region (investment £115m, jobs 850).
Last July, more than 4,000 business leaders and ‘global figures’ attended the “global investment conference”, alongside Nick Clegg, George Osborne and 33 other ministers.
A series of smaller “business summits” were also staged during the Games – but all took place in London, at Lancaster House, near Buckingham Palace.
Two years ago, there was controversy, when responsibility for inward investment was centralised in Whitehall, with the abolition of the regional development agencies (RDAs). But Lord Green added: “The 2012 Olympics were a once in a generation opportunity for the UK to showcase, to the world, Britain’s compelling investment offer and these preliminary figures are very encouraging.
“Despite strong competition from our traditional competitors and emerging economies, Britain has retained its position as the leading destination for foreign direct investment in Europe.”
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