Northern Powerhouse at 10: New government faces 'mammoth' challenge

It was a decade ago on Sunday (June 23) that then-Chancellor Osborne set out his vision for a “Northern Powerhouse” that could “take on the world”.

He used an address in Manchester in 2014 to say London’s dominance was “not good for our country” and set out a “a long-term plan for a country serious about its long-term economic future.”

George Osborne delivering his Northern Powerhouse speech in 2014. (Image: PA/ARCHIVE)

But ten years on the incoming government has been told that despite some progress a huge challenge still remains to deliver on Osborne’s agenda. Meanwhile Sunak’s government was slammed as being “less than enthusiastic” when it came to unlocking the region’s full potential.

It comes as Labour’s Angela Rayner told the Echo the Northern Powerhouse, and then levelling up, were slogans and soundbites “exposed as a scam and a sham”.

The Tory party insisted they were sticking to their plan to level up every corner of the UK, with polling day in the General Election less than two weeks away.

Henri Murison, Chief Executive of the Northern Powerhouse Partnership, said: “I hope that after the current leadership’s less than enthusiastic attitude to unlocking the North’s full economic potential, whoever is elected Prime Minister in a few weeks’ time returns to that original ambitious vision.

Henri Murison, Chief Executive of the Northern Powerhouse Partnership. (Image: Press release)

“We still have a mammoth challenge on our hands. Wages and life expectancy in the North East are among the lowest in the UK, while levels of child poverty are still shockingly high.”

Osborne’s speech focussed on transport, science and innovation and power as three key areas needed to build a Northern Powerhouse, with devolution being a key step, hailed a “standout success” by Mr Murison.

He added: “The standout success of the Northern Powerhouse has been devolution agenda, with nine in ten Northerners now represented by a metro mayor.

“The North East region as a whole has secured some of the most comprehensive and generous deals from government. This should allow local leaders to make progress on the key economic drivers of productivity and growth, including education, skills and transport.”

Labour’s Angela Rayner said her party would “get the economy growing for everyone” as she accused the Tories of failing to match the region’s potential.

Angela Rayner, Labour's Deputy Leader and Shadow Secretary of State for Levelling up. (Image: SARAH CALDECOTT)

The Deputy Leader and Shadow Secretary of State for Levelling up said: “Whatever slogan or soundbite, from the Northern Powerhouse to Levelling Up, the Tories’ promises have been exposed as a scam and a sham.

"Everywhere across our country, and across the North, is brimming with potential. But over the last decade, the Conservatives have failed to match it.

“No more cheap slogans. Labour will do the hard yards to get our economy growing for everyone and everywhere. We will release Britain’s untapped strengths and power up our towns and cities. On 4 July, the country has the opportunity to vote for the real change that the North deserves.”

A Conservative Party spokesperson said: “While Labour would put £1 billion of Levelling Up funding at risk, taking investment away from communities like Dewsbury, Chorley, Newcastle and Stockton-on-Tees, the Conservatives are sticking to the plan to level up every corner of the UK.

“The Conservatives have a clear plan to deliver HS2 between Euston and the West Midlands and will take bold action to level up rail and road journeys in every region of the country by investing £36 billion of savings from the second phase of HS2.

“The choice is clear: stick with the plan under Rishi Sunak and the Conservatives to transform transport across the country, or go back to square one with Keir Starmer and Labour – who did not commit to a single road or rail project in their manifesto and will increase taxes by £2,094 for every working family.”

Meanwhile Rhiannon Bearne, deputy CEO of the North East Chamber of Commerce echoed that the region still faces significant challenges but praised progress over the last 10 years.

Rhiannon Bearne.

 “We know challenges remain,” she said.

“The North East still faces significant issues around child poverty, poor local transport, ill health and economic inactivity which are also shared by much of the wider North.

“Devolution of powers and funding across the Northern Powerhouse area provides some of the levers to start to address these longstanding challenges. But we're realistic that change won't come overnight. That will require a stable policy environment and the conditions that provide businesses with the certainty they need to invest.

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“Many of the then Chancellor's comments were inspired by the powerhouse spirit that was already in evidence - through the partnerships between northern universities, local authorities and networks like our own Chambers of Commerce.

“The power and pace of those partnership has undoubtedly accelerated in the last decade. Devolution has played a major role in that, with the creation of the Tees Valley Combined Authority in 2017 being followed by the initial North of Tyne Combined Authority in 2019. The new North East Combined Authority has cemented this, with our whole region served by organisations and leaders devoted to delivering our best interests here and across the greater North.

“Northern regions are also increasingly talking about inclusive economic growth - looking at economic and social issues as two sides of the same coin. That's definitely something implied by the Northern Powerhouse speech.”