Boris Johnson must show he is serious about levelling up - Mike Thornton

The Levelling Up White Paper promises ‘bold new policy interventions to improve livelihoods and opportunities in all parts of the UK’, which is welcomed.

However, actions speak louder than words and the recent announcement confirming the Northern Powerhouse Rail plan is delayed once again, and won’t commence until September at the earliest, delivers yet another blow to businesses in the region. If the Government is serious about levelling up, then why do vital infrastructure projects keep being pushed back?

Ailing infrastructure in the North is holding back our economic growth. Business are telling us that the knock-on effect of poor transport links and sub-standard broadband services will hamper our economic recovery after the pandemic; pushing us even further behind those in the Capital and South East regions. If the Government genuinely wants to level up, large-scale projects, like the Northern Powerhouse Rail, need to be prioritised, not delayed, to strengthen, bolster and expand our infrastructural capacity and better support our economy, job prospects and communities in the North.

Our own The Real Economy research recently demonstrated that business leaders overwhelmingly believe the state of UK infrastructure is restricting economic growth nationally, locally and within their own organisations.

This demonstrates that improving our infrastructure is a key priority for business and as such it should be at the heart of the Government’s plan to level up, not put on the back burner. A long term, holistic vision is needed to transform key aspects of Yorkshire’s infrastructure, such as the creaking rail network and broadband blackspots. Investing and delivering on large scale projects, like the proposed public transit routes in Leeds, upgrading ailing minor transport routes and tackling the skills gap will all help to better support our economy, job prospects and communities.

Take manufacturing as an example, which is a backbone of our economy here in Yorkshire. Research from Make UK showed that manufacturers want the Government to prioritise improvements to local road, rail transport connections and digital connectivity to boost business growth. There are different challenges and opportunities for Yorkshire businesses but taking a regional approach, rather than focusing on whether HS2 will reach Leeds, will address some of the specific infrastructure needs and could have a greater impact on Northern prosperity.

The pandemic has accelerated digital investment; and many businesses have turned to technology, such as cloud software, to support new ways of working. However, the speed of change has exposed the shortcomings in digital connectivity across the region highlighting a real need to deliver on key schemes, like the 5G rollout and broader investment in digital infrastructure, to ensure that businesses can compete and recover post-pandemic.

Despite recent setbacks, we’ve found that businesses have not yet lost faith that the Government will make significant investments in infrastructure. Almost three quarters of middle market businesses believe the Government will deliver real tangible national infrastructure enhancements within the next three years. Let’s hope a significant amount of this anticipated investment will be directed towards the North, and delivered on time, and not postponed.

Yorkshire businesses are not resting on their laurels and are increasingly taking matters into their own hands and investing in their own infrastructure, but funding remains a significant stumbling block; as many are facing challenges accessing the finance needed to realise their ambitions.

This sends a clear message to Government that businesses are ready to invest and innovate, but they also need to see the Government keep up their side of the bargain. Only then will they have the confidence to invest in key capital expenditure and digital infrastructure to help shape their future success.

By Mike Thornton, RSM’s office managing partner in Leeds

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