Business investment plans in North show cause for optimism: Marcus Armstrong

But, amid these challenging conditions, is there a silver lining?

Brabners recently asked 400 institutional investors what the future holds for the UK’s private sector, with the results published this week as part of our new Northern Investment Index report. The report seeks both to explore where institutional investors intend to deploy capital over the next 12 months and to gauge just how competitive the North is in global markets – and the results bring significant room for optimism.

From a national perspective, the research shows that there remains strong interest in the UK as a market for both domestic investors and those from abroad, despite recent economic upheaval.

Both British (45 per cent) and US-based (34 per cent) respondents judged it as the most attractive market for investment internationally. Anecdotally, we are also seeing the relative weakness of the pound continue to drive a surge in interest from European, Asian and Middle-Eastern investors seeking value-enhanced assets.

Alongside this, the research shows that the majority (82 per cent) of investors are planning to either maintain or increase their support in the coming year, with those planning to grow their investment in the UK set do so by an average of between 20-30 per cent.

It’s encouraging to see that the UK as a whole is still widely considered as an important investment

opportunity – but the report paints a particularly promising picture for the North.

Regional mayors, devolved governance and the resultant ecosystems that are being put in place are

beginning to tell an increasingly attractive story to the outside world. As a result, we are starting to see

a more balanced spread of investor interest across the country as funds traditionally deployed in

London are being re-focussed in the regions.

This is reflected in our research which shows that Leeds ranks in the top six UK cities most likely to

attract funding from institutional investors. It is also apparent in the increasing number of major

corporate businesses and government bodies choosing to base their operations in the city region.

However, despite our data pointing to increased funding for businesses in the North, its focus on the

private sector means it does not reflect the support the region needs to ‘level up’ in other ways.

For Leeds to fulfil its potential, like other major cities in the North, it will need to continue working in partnership with other major powers from across the region to address long-standing structural issues such as transport infrastructure (particularly connectivity east to west), social mobility, business incubation and skills gaps.

Metro mayor Tracy Brabin has been a positive advocate in her calls for West Yorkshire to receive the same consideration as Greater Manchester and Birmingham when it comes to the additional devolved budgetary powers recently granted by The Treasury. There is no doubt that giving the region more control over its future will help to create the best conditions for growth.

However, responsibility can’t just lie with local government. Speaking on behalf of a purpose-led firm that believes in bringing about positive change, it is clear that the investment highlighted in our report provides a major opportunity for businesses in Leeds to contribute to building prosperity for all. Our responsibility as business leaders is to harness that investment effectively to the benefit of the city region and the wider Yorkshire community.

Marcus Armstrong is Head of Corporate (Leeds) at Brabners