Business investment can help the North’s economy grow - Shevaun Haviland
Business investment is at the heart of the UK economy. However, in recent years it has become its Achilles heel, and growth has suffered. Firms in Yorkshire and across the country are having to deal with spiralling domestic business costs and huge geopolitical uncertainty.
But despite that challenging backdrop, I’ll be bringing an optimistic message to the first ever Great North Investment Summit in Leeds, today.
Data from the thousands of businesses we speak to in our Chamber network show business investment levels in the north have recently been bucking the national trend. In our Q1 survey, firms in the north edged ahead of the pack when it came to increasing their investment plans over the past three months. In contrast, across the UK overall, more businesses reported cutting investment rather than increasing it.
The Middle East conflict will undoubtedly impact investment levels during the rest of the year. But we should celebrate the financial commitment businesses are making in the north and consider how we can turbocharge that for the future.
Because, put simply, when business invests in the North - the UK economy grows.
The North has all the fundamentals that investors are looking for. It is home to more than a million businesses and globally competitive sectors in advanced manufacturing, energy, digital and life sciences. It plays a vital role in UK exports and is already a base for major international firms. The opportunity is clear.
The government has made some welcome recent announcements including a defence growth deal for South Yorkshire and more support for financial firms in Leeds.
But to make the North an even better place to invest, it needs better transport infrastructure. Recent analysis of Treasury figures by the Institute for Public Policy Research showed that in the past decade, London has received around £1,183 of transport spending per person per year, compared with roughly £486 in the North. Those are not just statistics, they have real consequences for productivity, connectivity and investor confidence.
Businesses need reliable, modern transport networks to move people, goods and ideas efficiently. But long-standing uncertainty over major projects has slowed decision-making. Delivering Northern Powerhouse Rail in full is crucial. It would improve connectivity, raise productivity and unlock private capital that is currently sitting on the sidelines. Similarly, the reopening of Doncaster Sheffield Airport would bring massive benefits to the businesses of South Yorkshire and beyond.
Infrastructure investment is also a powerful tool to unlock SME supply chains, with chambers ready to make that happen.
Boosting skills is also crucial to increasing investment. BCC data shows around three quarters of businesses are reporting recruitment difficulties. Those staffing issues are one of the most significant barriers to investment. Firms invest where they can access the talent they need.
That’s why Chambers of Commerce in Yorkshire are leading the charge for a skills revolution, through Local Skills Improvement Plans. These successful initiatives are bringing businesses and education providers round the same table to understand local needs.
The message from today’s summit must be clear. Investing in the North makes good business sense. Even in challenging times, it can and should lead the UK’s growth story.
Shevaun Haviland is director general of the British Chambers of Commerce.