David Duffy: Northern Powerhouse's success will be driven by devolution

Achieving this will require everyone in the North to pull together – public and private sector working together towards the same objective: to increase the contribution the region makes to the UK economy with unity of propose.

As a bank with its roots in Yorkshire, we view the county as the heart of the North. Yorkshire should be at the heart of the Northern Powerhouse but to do this 
it must take more control of its own future.

Devolution of power to regional and local decision-makers is a vital element of the Northern Powerhouse.

There is broad consensus that putting power back in the hands of civic leaders in the north of England is an important factor in unlocking the potential for economic growth and prosperity.

Greater Manchester, Liverpool City Region and Tees Valley are all showing the benefits that flow financially and more intangibly from devolution, and soon the North of Tyne will follow.

As this process accelerates, Yorkshire is in danger of being left behind.

Elsewhere, devolution is gathering pace, as evidenced by the strengthening of the devolution deals announced for the West Midlands and Greater Manchester in the Budget last month.

The financial detriment to Yorkshire is becoming clear. Other areas in the Northern Powerhouse are benefitting from additional central government funding through the “city deals”, helping them raise productivity through funding for vital infrastructure and skills 
training.

This isn’t just a problem for Yorkshire but for the whole of the Northern economic area.

Putting power in the hands of decision-makers in the north of England is rightly seen as a vital component of the Northern Powerhouse agenda.

Failure to devolve power to such an important part of the North damages the whole agenda.

It also puts at risk attempts by civic leaders across the North to act together on strategic pan-Northern projects such as Northern Powerhouse Rail.

The lack of progress in finalising a devolution settlement in Yorkshire is a cause of increasing frustration in the business community in Yorkshire, not least our SME customers, who see opportunities to help grow their businesses and improve prosperity across the region slipping away.

At Yorkshire Bank we share this frustration. We are not proposing what form devolution in Yorkshire should take, that is a political question but we note the suggestion last week from the Archbishop of York that implementing the existing settlement for Sheffield City Region in the coming months is the right first step. Whether any next step is One Yorkshire or the Council of Mayors option put forward by Lord Jim O’Neill earlier this month, what’s more important is that there is no further delay and that a way forward for devolution is found as soon as possible.

It will require compromise. We must find a way to reach an eventual settlement which will allow Yorkshire to move forward and keep pace with the rest of the Northern Powerhouse.

David Duffy is chief executive of Clydesdale and Yorkshire Banking Group.