Next phase of Rachel Reeves' Northern Growth Strategy includes South Yorkshire defence deal

Rachel Reeves has announced the next phase of the Treasury’s Northern Growth Strategy, including a new defence deal in South Yorkshire and more support for Leeds’ Northern Square Mile.

The Chancellor believes that alongside embracing AI and building a closer relationship with the European Union, regional growth is the third big opportunity to boost the UK economy.

Ms Reeves said: “For too long the North has been sidelined, denied investment and had its potential held back.

“Backing its industrial strengths like Manchester’s thriving digital sector and Sheffield’s cutting-edge defence manufacturing will boost the region’s economy and place it at the centre of our national growth.

“In a changing world we have the right economic plan: stability, investment and reform to build a stronger, more secure economy.”

Chancellor of the Exchequer Rachel Reeves delivers the Mais Lecture. Credit: Yui Mok/PA Wireplaceholder image
Chancellor of the Exchequer Rachel Reeves delivers the Mais Lecture. Credit: Yui Mok/PA Wire | Yui Mok/PA Wire

The announcement includes £50m for a South Yorkshire Defence Growth Deal, that the Treasury says will boost the burgeoning research and development sector in the region.

Mayor Oliver Coppard said this was a “huge vote of confidence in the work we do here in South Yorkshire and our contribution to the security of this country”.

Ms Reeves said the Government’s Office for Investment will also help attract more global companies to Leeds’ Northern Square Mile, making the most of the city's fintech expertise.

Tees Valley Mayor Ben Houchen.placeholder image
Tees Valley Mayor Ben Houchen.

West Yorkshire Mayor Tracy Brabin said: “Together with the government, we are working hard to ensure people living across the North, in places like West Yorkshire, have the opportunities they need to succeed and get on in life, without having to move away from their family and hometown."

Once again, it appears the Chancellor has focused on the cross-Pennine corridor of big cities, with places like York, Hull and Teesside apparently not included.

Tees Valley Mayor Lord Ben Houchen previously told The Yorkshire Post that “if the Chancellor truly wants to see every part of Britain do well, she would do well to remember the towns in places like Teesside that have been let down for too long by governments of all colours”.

“Labour promised change but seems determined to continue the decades of Treasury orthodoxy that has favoured the big cities, stripping our towns of jobs and opportunity while the same places keep taking more than their fair share,” he added.

“It’s time the Chancellor left London and the big cities and faced the reality here in Teesside. Next time she might even remember Darlington if she used her Treasury office here more often.”

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