The economy is not going to correct itself, the Government needs to create the right environment to enable businesses to thrive. Only then will Britain’s economic woes be addressed.

The plans by luxury carmarker McLaren to expand its research and development site in South Yorkshire is illustrative of the sort of investment Britain and indeed this region needs.

The carmaker is investing £500m in the UK and committed to creating 1,000 new jobs by 2032.

How many of these jobs will materialise in South Yorkshire is yet to be seen with Woking-based McLaren opening a new vehicle production facility in the UK as part of the investment plans.

Nick Collins, Chief Executive Officer of McLaren Group looks on as Prime Minister Andy Burnham sits inside a McLaren W1. PIC: Stefan Rousseau/PA Wire

placeholder image — Nick Collins, Chief Executive Officer of McLaren Group looks on as Prime Minister Andy Burnham sits inside a McLaren W1. PIC: Stefan Rousseau/PA Wire

The existing McLaren Composites Technology Centre, which is located at the Advanced Manufacturing Park (AMP) in Rotherham and employs around 200 people, is also to benefit.

What it does show is the importance of industrial clusters. The positive impact of AMP has been well documented. And there’s no reason why it can’t be held up as an exemplar for economic regeneration across the UK.

AMP has helped transform this part of South Yorkshire, enabling the surrounding communities to look forward rather than continuing to lament the closure of coal mines. Young people in particular have been provided with opportunities that they otherwise would never have been afforded. It’s the very definition of good growth that Andy Burnham’s Government is aiming for.

Flourishing industrial clusters are going to be key to getting the economy moving in the right direction again.