Shadow MPC raises ‘interest rate for the North’ idea as devolution clamour grows

Members of the committee agreed that while the region’s economy still appeared to be moving in the right direction there were concerns about the pace of growth slowing again.

The Shadow MPC is a partnership between law firm Lupton Fawcett Denison Till and The Yorkshire Post.

Committee chairman Jonathan Oxley, from Lupton Fawcett Denison Till, questioned whether the growing momentum behind calls for devolution of Government powers and funding to the North could be an opportunity to stimulate the region’s economy.

Paul Stephens, from UK Trade and Investment, said: “Given all the devolution agenda should there be a different monetary policy for the North? Is the economy different enough to warrant something else?”

The committee heard from Andrew Lindsay, chairman of the West and North Yorkshire Chamber of Commerce, that its latest research showed that economic indicators remained positive but there had been a dramatic reduction in exports in the third quarter linked to the poor performance of the Eurozone economies.

Bill Adams, representing the TUC, argued that low wages were a drag on the economy and that while the number of people out of work had reduced many were in part-time jobs.

“We have reached a stage where this doesn’t need to be adversarial. There needs to be a proper economic debate about what people should be paid.”

The committee voted unanimously in favour of maintaining interest rates at their current level. The Bank of England Monetary Policy Committee is due to announce its latest interest rates decision tomorrow.