Getting Yorkshire back in business

THE coalition has taken a huge political and economic gamble by indicating it will abolish Yorkshire Forward. That decision means much of the region's future hangs on the success of the planned growth funds. If these new organisations can help to create a new and prosperous private sector economy here, then the gamble will have paid off.

As Nick Clegg, the Deputy Prime Minister, writes, businesses in the North struggled over the last 13 years as Britain grew reliant on the City of London. Start-up firms found it hard to get off the ground amid cheap foreign competition, a forest of red tape and the squeeze on bank credit.

Yorkshire became highly dependent on the public sector under Labour. The policies of Tony Blair and Gordon Brown stimulated a boom for the region, but it was unsustainable and created an unbalanced economy.

Now the regional growth fund, which will be worth 1bn, is an opportunity for businesses to bid for cash and develop infrastructure projects that it is hoped will generate a new time of prosperity.

The establishment of the fund is a recognition that, despite the expected demise of Yorkshire Forward in its present form, there is a real need for organisations to drive regional enterprise and hold a localised knowledge of the economy. Such a knowledge cannot be amassed from an office in Whitehall.

When Mr Clegg and David Cameron appear in Yorkshire today, they will most likely be challenged by voters on the impact on thousands of jobs caused by the disappearance of the RDA. They are also likely to face questions about the coalition's controversial decision to cancel the planned 80m loan to Sheffield Forgemasters.

It is essential the two men at the top of the country show they understand the severity of such choices. The cuts the region is facing are harsh and these must be motivated by a long-term financial plan with no hint of politicking. Mr Clegg and Mr Cameron must demonstrate they have the vision to transform Yorkshire's economy.