AS MICHAEL Gove defended the funding of the Government's levelling-up promises and insisted they will “change the economic model of this country”, North East businesses have been telling The Northern Echo what they think.
Nigel Emmerson, partner at Womble Bond Dickinson, told us: “The 12 Missions to Level Up the UK are welcome news. Having targets will focus minds and give us all something to work towards. Increased devolution is the key to effective levelling up, giving more local mayors increased powers and funding. The North East needs to make sure that it takes advantage of the devolution deal in a coordinated and combined way.
“The North East needs strong local leaders with the power and resources to effect real change in the locations which they know best.
“I was particularly glad to see the expanded Mayoral Combined Authority for the North East get a mention, as well as Durham one of the counties to be invited to agree a county deal.
“The increase of R&D funding outside of the Greater South East by at least 40% by 2030 was also welcome news. The North East is ideally placed to take advantage of this increase, particularly at innovative developments such as The Helix in Newcastle, where our new office The Spark, is based. I am pleased to see the renewed focus on education and health disparities which are acute issues in the North East.
“I am delighted to see the scrapping of the 80/20 rule, which will see government funding for housing supply moved from London and the South East to brownfield sites in the North and Midlands.
“The introduction of the decent homes standard for the Private Rented Sector will drive up standards of rented housing which is a good thing - renters should expect a decent minimum standard of housing, irrespective of whether they are in the social housing or private rented sector. Increased funding for SME housebuilders will also increase the supply of housing. It is good to see a restated commitment by government to building more genuinely affordable social housing.
“Generally, we are pleased to see a real focus on housing in the White Paper. However, levelling up will not be achieved unless there are enough good quality affordable homes available.”
Jonathan Walker, policy director at the North East England Chamber of Commerce said: “For a long time we have campaigned for Government to recognise the damage that the inequalities between regions do to the national economy. We therefore welcome the Levelling Up White Paper.
" It is a good description and acknowledgement of many of the symptoms of the economic gaps in our country. But this diagnosis is only part of what we need. We now have to see how serious Government is about giving the North East the necessary resources and focus, and to working with us.
“The White Paper talks about a series of missions. To be successful a mission needs strong leadership and a relentless focus on delivery. Levelling Up must not simply exist in the minds of policy makers; it must be felt quickly by businesses and communities across our region.
“The desire in the North East to improve our economy is enormous, as are the rewards for doing so. Today must mark the end of decades of under-investment and the start of a new approach to economic development, coupled with a commitment by Government to take the tough decisions to prioritise resources towards the areas that need them the most.”
Kevin Bell, Partner in the transport team at Womble Bond Dickinson said: "As someone who cares passionately about the key role that public transport plays in connecting and transforming our towns and cities, boosting our economic recovery from the Covid-19 pandemic and delivering even more education and job opportunities, it is positive to hear that at the heart of the Government's Levelling Up White Paper is the "national mission" to ensure that by 2030 public transport connectivity across the UK is "significantly closer to the standards of London" including improved services, integrated ticketing and simpler fares.
"On the face of it, this is great news for the general fare paying public. They are being promised a step-change in public transport provision, starting with ambitious plans for bus improvements in areas where it is suggested the most impact can be made, such as Luton, Portsmouth, Stoke-on-Trent, Derbyshire and Warrington. The White Paper also goes further and promises a huge shift in power from Whitehall to local leaders in what has been dubbed the "devolution revolution". This is important, as devolution in transport matters on a practical level. It can bring real and tangible improvements to local transport and to the everyday lives of ordinary people. With devolution of more powers and funding, people can enjoy more and better rail, tram and bus services and improved fares and ticketing options (and thus cheaper and more convenient travel).
"But scratch beneath the surface of the headline announcements and there is very little detail as to how the Government will achieve this "national mission". Although some critics are already denouncing the White Paper as a series of slogans and "reheated" plans, the Government can nevertheless point to the National Bus Strategy, the Transport Decarbonisation Plan, the Integrated Rail Plan and the transport settlements in eight city regions outside London as existing evidence of its commitment to addressing regional transport inequalities and delivering the levelling up agenda.
"Yet, when it comes down to it, the bottom line is … well, just that, the bottom line. How will this all be funded? We all know that there is not an awful lot of money sloshing about in the coffers of the Treasury and rumour has it that the Chancellor has already killed off a number of transformational ideas that were included in previous drafts of the White Paper. Add to that the fact that only last month we heard in the press that funding had been slashed in half (from £3bn to just £1.4bn) for the Government's "Bus Back Better" strategy and you soon realise that difficult decisions will have to be made if those regions outside London and the South East are going to be able to deliver the green, reliable and affordable transport networks that its people deserve.”
Jo Robison, Director of DPP Planning which has offices in Newcastle and Leeds, said: “The policy of devolving central government money to mayoral combined authorities has proved effective. Expanding this could release energy, ideas, and leadership where it is needed most, particularly in the regeneration of urban areas. Properly executed planning policies, devolved funds and borrowing powers can put growth and renewal at the heart of decision making. Rolling out this model to more areas of the country should help to stimulate local economies in places that are in greatest need.”
Read more: All of our Level Up campaign stories are here
Lee Powell, CEO of GMI Construction Group, which operates in Yorkshire, the North East, North West and the Midlands, told us: “Construction will be a big winner from the Levelling Up policy. New buildings are needed to house the modern factories, distribution centres and offices that will be driving our growth in the years ahead. The economy is already gearing up for a post-pandemic recovery; the confirmation of the intention to add levelling up stimulus to less prosperous areas of the UK will turbo-charge projects and ensure the gains are spread more evenly than during normal periods of growth.”
Rosemary Du Rose, Chief Executive of Beyond Housing, which provides 15,000 homes and a range of services to more than 30,000 customers across the Tees Valley and North Yorkshire, said: “Levelling Up must focus on the opportunities to improve people’s lives in areas of the UK that are remote from big cities and economic growth hubs.
“Housing and communities that have been left behind in previous periods of economic growth need to be enhanced and regenerated. So far, we have seen success in Tees Valley, and the early wins need to be followed up with more of the same to make them permanent. Housing is such a vital component of levelling up and the early announcement of funds to regenerate brownfield sites will help deliver the right housing mix to stimulate the growth of existing and new communities.”
Ian Gilthorpe, Senior Partner, Square One Law, which has offices in Newcastle, Leeds and Darlington, said: “We are already starting to see the early effects of Levelling Up in terms of highly qualified people returning to the North. The policies announced this week can help us to make the North East and Yorkshire the first choice for our talent professionals to work. If local leaders have the opportunity for more local decision making, enhanced funding and borrowing powers, along with the freedom to innovate, they will then be able to offer effective change to areas that need it most. It’s really important that the Government follows through on its commitments.”
Angus White, Partner at North East Property specialists Naylors Gavin Black, said: “The North East is already seeing a significant increase in post-pandemic property investment. The Levelling Up agenda is underway here and the announcement this week is an important confirmation of the policy after a period of political uncertainty. Tees Valley and the North East Combined Authority are rightly being championed as areas that are benefitting from these policies, with investments which are creating jobs and providing bright long-term economic prospects. It’s important that the smaller towns also benefit from replicating the governance and financing policies which have been to be successful in these areas.”
Ian McElroy, Chief Executive of Newcastle-based Tier One Capital: “I’m pleased that the Government is starting to think more radically about the way we can make the best use of existing resources. The idea that massive pension funds of local authorities can be encouraged to invest in the areas the money comes from is a good one; Michael Gove said at the weekend up to £16billion could be redirected away from investments in foreign-owned corporations, into our local areas.
“Our own business has demonstrated early success through our management of the Property Backed Lending Trust (PBLT), which has raised £75m to loan to development projects in the North East. This type of trust should be able to attract money from our local authorities as they demonstrate faith in the areas they are seeking to renew.”
Speaking up for small firms, FSB National Chair Mike Cherry, said: “This paper certainly isn’t short of ambition but we need to make sure it is delivered well. The acid test will be whether small firms, which are integral to our economic recovery, feel better supported, are better connected, can find the right staff and feel more pride in their area. With potentially debilitating tax rises on the horizon, Levelling Up must now deliver lasting change; it cannot just be a worthy intention or partisan slogan.
“To ensure Levelling Up is a success, small businesses must be front and centre, with improvements made to connectivity, business support and skills development across the UK. The focus that the Government has put on locality, rejuvenating town centres and high streets, where the majority of businesses are small, is pleasing to see.
“Housing is key to levelling up and while it’s a positive move to provide loans to small housing firms as part of the Home Building Fund, a small house builders strategy is needed to make certain smaller businesses are at the forefront of policy thinking.
“In the towns and areas of the country where it is most key to level up, small businesses are not short of ambition and want to flourish and grow. Our research shows half of small business owners in these ‘less favoured areas’ striving to become a business leader in their community. But significant support is needed, addressing regional inequalities and moving beyond just job creation."
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