Improving employment in North ‘worth £40bn to UK’

Narrowing the gap in output between the North of England and the other regions by only 50 per cent would be equivalent to more than £1,600 per English worker, a study by the Northern Economic Futures Commission has found.

The Commission, which is made up of high-profile figures from business, academia and the public sector, said a greater focus on the potential of the North of England would bring benefits for the whole of the UK.

The Yorkhire Post has been campaigning for a fairer deal for the region and the Commission argues the North of England’s vital economic role should lead to the region’s assets and strengths being maximised.

The report found the value of export goods, business investment in research and development, and rates of entrepreneurship are all growing faster in the North than the South.

Over the past decade, rates of entrepreneurial activity in Yorkshire and the Humber region have increased by 56 per cent while declining by 3.5 per cent in London and the South East.

It also finds that business survival rates in the North have been significantly better than anywhere else in the country since 2008.

The report argues if the Government were to tackle head-on the unemployment problem in the North of England and brought it down to the average in the rest of England then the Government could be £1.2bn better off.

Unemployment currently stands at 9.9 per cent across the North compared with 7.9 per cent average in the rest of England. Geoff Muirhead, Chair of the Northern Economic Futures Commission said: “The North South divide has existed for too long and it’s having a negative effect on the national economy which is desperate for growth.

“Our Commission is convinced that we can unlock potential for vital growth in the North of England if government creates a more level playing field.

“The North doesn’t need more hand-outs but a long-term economic strategy which recognises the differences between places and the need for more local approaches to skills, innovation and infrastructure.”

Ed Cox, Director of thinktank IPPR North and deputy chair of the Commission said: “In terms of sheer scale the North cannot be ignored.

“Twenty seven per cent of England’s working age population lives in the North but only contributes 23 per cent of national economic output. If the North was a country then it would rank as the eighth biggest economy in the EU, twice the size of Scotland and bigger than countries like Sweden and Denmark. If the national economy is to prosper the North needs to be performing strongly – it’s in all our interests.”