Andy Burnham's commitment to devolution is welcome for Northern business leaders: Victoria Wainwright
For decades, the issues of the north/south divide has been one that politicians have given lip service to but delivered so little.
The concept of the Northern Powerhouse, first mooted by then chancellor George Osborne, was the one that looked to have the most clearly defined policy objectives and clearly had the buy in of business and political leaders in the north. Sadly, Osborne’s removal from Government meant it faded in the list of Government priorities as it grappled with the interminable process of our leaving the European Union.
More latterly Boris Johnson’s concept of ‘levelling up’ was never backed up with policy, capital or substance and continued the theme built up over decades of concentrating on the South East as the central driver of British economic focus.
When the Labour Government came in any concept of addressing the north/south divide quickly faded from view.
Which leads us to Andy Burnham’s speech this week, which was the clearest vision to date of a decentralised Britain that we have seen in many years. As Northern business leaders here in Yorkshire, to see such a strong commitment to devolution, a hugely popular policy, is to be welcomed.
What is needed now is clearly defined policy measures that will set out ways to boost investment, improve productivity and give businesses the confidence they so desperately need to throw off the shackles of constraint they are operating to deliver the economic growth that has been missing in Britain for many years.
Business leaders are crying out for consistency, clarity and stability from policymakers and this is the only way that business confidence is to be improved.
Entrepreneurs will judge Andy Burnham’s plans on whether they deliver the boost to investment, productivity and trade desperately needed to unlock growth.
As a recent report from our president Andy Haldane stated, government must always ask whether policy passes a ‘growth delivery test’ to encourage firms to invest and grow.
The devolution agenda will only succeed if it places local business at its heart and brings benefits to all parts of the UK. Our Chamber network completely understands how national ambition can be translated into local economic growth and we have long argued that more decisions affecting local economies, including transport, skills and infrastructure, should be taken closer to the communities they serve.
This has been perhaps best seen in the Local Skills Improvement Plans we have been developing in both North and West Yorkshire. Working in conjunction with our combined authorities the projects have shown how the power of devolution can help address the challenges facing our economy. Creating greater parity between academic and technical qualifications is something business wholeheartedly supports.
Mr Burnham’s pledge to improve the public procurement system is also welcome, but it must quickly bring benefits to SME supply chains across the UK. And on fiscal devolution we must see money spent in the right way to boost local growth. It must not mean further costs on business. Our analysis shows government-imposed costs on SMEs have risen by more than 70 per cent in the past 10 years. New local business taxes and visitor levies would stifle economic growth.
The difficult truth is, whoever leads the UK, the primary challenge remains the same - delivering growth. Business stands ready to work in partnership with any new Prime Minister to focus on that crucial task and, as Northern business leaders, we are chomping at the bit to deliver the change that Britain so desperately needs.
Victoria Wainwright is chair of West & North Yorkshire Chamber of Commerce and Office Managing Partner at Azets.