Yorkshire bid to woo Ministers in fight for eco-bank

The Leeds city region is launching its bid to host the institution that the Government hopes will help pay for Britain’s transition to a non-polluting economy.

The bank is only likely to create 100 jobs, although supporters say it will have “iconic” value as the Government accelerates its green agenda.

But Leeds faces strong competition from counter bids from rivals including London, Edinburgh, Manchester and Bristol and backers hope that they can convince Ministers of the city region’s merits.

The decision, to be taken by Business Secretary Vince Cable, will be a vital test of the Government’s stated commitment to rebalance the UK economy away from London and the South East.

The growing North-South divide is the subject of the Yorkshire Post campaign to demand a fair deal on funding, investment and opportunities for the region.

Business leaders in Yorkshire will promote the Leeds city region as the perfect location for the bank, as it would be close to major low-carbon investment opportunities.

They will point to the strong track record of existing projects such as the carbon capture and storage pilot at Hatfield Colliery, the forthcoming offshore windfarm manufacturing plant at Hull, one of Europe’s largest biomass-fired power stations at Drax near Selby and electric transport infrastructure in the North East.

Supporters will also highlight the wealth of financial talent in Leeds, the leading centre outside London for professional services, and the existing environmental know-how of C02 Sense Yorkshire, the not-for-profit company that supports and invests in green businesses, and the region’s universities. And they will say that the city region can trump rival centres on value for money.

Supporters including the Leeds City Region Local Enterprise Partnership; the Leeds, York and North Yorkshire Chamber of Commerce; engineering consultancy Arup; and coalition MPs will launch their business case today at an event in Leeds with Business Minister Mark Prisk.

Julian Smith, the Conservative MP for Skipton and Ripon, said Yorkshire can demonstrate “huge capability” in low-carbon infrastructure, which combined with financial and environmental expertise “gives us a huge advantage”.

He said locating the bank in the city region would “make sense both for rebalancing the economy but also for the country as a whole because Leeds really can make a difference”.

Mr Smith added: “We have to fight to ensure we get investment and we get our fair share of money from Europe and the Government.”

Mr Cable has said the bank should be close to private sector financiers, such as commercial banks, private equity houses and institutional investors, a requirement that could lead him to choose London ahead of rivals.

But Greg Mulholland, the Liberal Democrat MP for Leeds North West, said the main bank should be located in the Leeds city region with an outpost in the City of London. He said locating the entire organisation in London would be a “lost opportunity”.

Mr Mulholland said: “It’s very important in these economic times for the Government with opportunities to really invest to regenerate certain parts of the country.

“We are all aware that the North has suffered more than some of the regions and while Leeds itself has continued to do well it certainly would be a boost, not just for the economy of the city region and indeed for Yorkshire, but also for the whole of the North of England.”

The Government’s criteria includes proximity to project sponsors, such as utility and waste firms, specialist advisors and influential green thinkers. It also wants ease of access to talent in financial and environmental services and competitive commercial costs.