Britain can't prosper while half the nation feels left behind: Wolfgang Douglas
BRITAIN'S so-called North-South divide is not simply an argument about fairness, but economics, productivity and our ability to thrive in an increasingly competitive world.
And I see it clearly, as someone whose business interests span both London and northern England – notably Rotherham and Hull.
London is still a leading global financial centre, attracting investment, talent and opportunity, but it highlights how our economy is dangerously unbalanced.
As the engine of the national then global Industrial Revolution, the North still possesses world-class manufacturing, engineering, logistics, energy generation and digital industries. It has internationally respected universities and highly skilled workforces too, yet many northern towns and cities underperform due to decades of centralised decision-making, leaving them with poorer transport links, investment and opportunities than comparable regions in Europe. The cost of that imbalance is staggering. The Treasury reckons that boosting productivity across the North's five largest mayoral regions to match the UK average would add £40 billion in additional economic output, plus £15 billion in extra annual tax revenues annually – an opportunity currently spurned.
Fact is, Britain is one of the most centralised economies in the developed world, with too many major decisions affecting northern commerce and industry being made in Westminster.
Consequently, London consistently enjoys higher productivity than any other UK region, while northern areas wither. So, young graduates must head south to fulfil their ambitions, while businesses wait years for infrastructure decisions that would be delivered faster in countries with stronger regional government.
All of which supports Prime Minister Andy Burnham's call for a ‘No. 10 North’ and relocating chunks of government administration away from London. I’m cautiously supportive because policymakers tend to make better decisions when working alongside the people and companies affected, but it must be done without wastage and adding to an already bloated and costly UK civil service – or we’ll see headlines screaming about costly redundancies or relocation bills.
Successful economies rarely rely on a single dominant city. Germany's strength comes from multiple economic powerhouses including Munich, Hamburg, Frankfurt and Stuttgart, while the US does not depend solely upon Washington and New York.
In sharp contrast, London-centric Britain’s northern communities feel overlooked and lose confidence in politics and public institutions. Talent flees, High Streets decline and investment goes elsewhere – an increasingly difficult cycle to break.
But London also pays a price: silly property values, plus overstretched transport networks and infrastructure.
Regional investment AND administration is essential to long-term growth – Britain’s economic prosperity cannot depend on postcode. If No. 10 North helps attract investment, accelerates infrastructure decisions and gives regional businesses a stronger voice inside government, it can reshape the UK economy and our future. So, it’s no longer a question of whether we can afford to rebalance the economy, but whether we can afford not to – a stronger North can create a stronger Britain.
By Wolfgang Douglas Entrepreneur