Ministers stress commitment to Northern Powerhouse amid concerns about EU trade

Responding to accusations that Number 10 has diverted funding away from the North to secure a “£1bn” deal with the DUP, ministers today reiterated the governments ongoing “determination” to support growth in the region.

The assurance came as research by the ONS revealed that trade with the EU accounts for 40 percent – or £863m-worth – of Yorkshire’s service exports, prompting renewed calls for ministers to keep Britain within the Single Market.

They also came amid criticism of the Government’s lack of preparation for life outside the EU, with the head of the public spending watch dog hitting out at its “vague” response to concerns about customs checks.

A question mark has loomed over the Northern Powerhouse agenda since Mrs May entered Downing Street last summer. As the brainchild of the former Chancellor George Osborne, it was unclear whether the plan to reboot the North’s economy would find a champion in the new administration.

The appointment of a new Powerhouse Minister in the wake of last month’s election has helped to set many minds at ease. However, the First Secretary of State Damian Green took further steps to promote the strategy during Wednesday PMQs after he was challenged by the Labour Judith Cummins over a lack of progress with TransPennine electrification.

Addressing the minister, the Bradford South MP suggested the Government has failed to deliver in its promise of “investment in the northern powerhouse”. She went on to accuse ministers of funding “the £1 bn deal with the DUP... at the expense of investment in Bradford and the North”.

Mr Green dismissed the claim, arguing that “the money that has gone for infrastructure in Northern Ireland is richly needed there”. He added: “[You are] right about the importance of the Northern Powerhouse, and we will continue with that programme.

“We are seeing unemployment falling consistently in the North of England as a sign of how the economy there is going as well as anywhere else in the country. We are determined to continue that.”

Earlier in the day, the ONS published its latest service exports data for the whole of 2015. The figures showed the EU to be one of Yorkshire’s biggest trading partners for manufacturing. communications and other service industries, making up for 39.7 percent of its £2.1bn-worth of annual exports.

The research came ahead of the publication of the Repeal Bill today, which marks the next big step in the process of preparing Britain to leave the EU. There are concerns that MPs on both sides of the Brexit debate will submit a flood of amendments to the Bill affecting areas like research, trade and industry regulation.

Wakefield MP and Open Britain campaigner Mary Creagh said the ONS data highlighted the importance of Single Market membership for Yorkshire and the wider UK. “These figures make clear that Yorkshire benefits hugely from services trade with the European Union. Leaving the Single Market... will put much of this trade at risk,” she said.

“To protect businesses and jobs in our region, the Government must negotiate to keep the UK in the Single Market. Anything less will make the people of Yorkshire worse off, which would be an unforgiveable outcome.”Commenting on the ONS findings, a DExEU spokesperson stated that the Government is committed to securing a “new partnership” with the European Union “that is in the interests of businesses in the UK – including Yorkshire – and across the EU”.

“While will be leaving the Single Market and the Customs Union, we want to achieve a comprehensive free trade agreement that allows for the most frictionless possible trade,” the spokesman added.