Investment In The Northern Powerhouse: The Key Driving Forces

As well as focussing on the economy, the Northern Powerhouse strategy has boosted innovation, education and infrastructure. Northern Powerhouse developments have also supported growth in the arts. There has equally been significant investment in new art spaces, cultural events and arts-based businesses. These businesses accessed microfinance through the Northern Powerhouse Investment Fund and expanded their work.

Growth in London and its surrounding area has slowed due to a range of economic factors. This is encouraging investors to look to the north for better returns on their investment. The region has seen growth in investment property, with a wide range of new Northern Powerhouse developments.

By offering to finance a wide range of businesses across many sectors, it allows the economy to diversify. £70 million has been allocated to the Northern Powerhouse Schools Strategy.

This funding will boost the educational opportunities for young people growing up in the North. Importantly, universities in the North have also seen considerable investment, attracting students to the area who add a great deal to the economy.

Investment in education can also be a significant force in driving the future of the Northern Powerhouse plan. With long-term goals and focus on critical skills gaps, investment in education is of great importance for the longevity of the Northern Powerhouse.

The Northern Powerhouse plan should be making improvements to the quality of life for people in the North. Quality of life is another area where the disparities between the North and South are apparent. With improvements to education, transport and new developments in the arts and leisure, a multi-faceted approach is designed to make a difference.

Improved job opportunities will lead to increased economic stability for residents. Better job prospects also allow them to have more disposable income to put into the economy. Connectivity and transport links between the cities of the Northern Powerhouse can lead to a combined improvement of the region, with more inward investment and collaboration across the cities.

Organisations like The Northern Powerhouse Partnership have been working to strengthen links between northern cities and encourage joint ventures. In July 2018, the government announced NP11 – a government-funded board made up of the chairs of the 11 Local Enterprise Partnerships across the North of England.

NP11’s role is to represent northern regions with a single voice, advising and working with government on strategies to boost productivity and tackle the UK’s north-south divide.

The aim is to drive long-term investment, improve transport and skills, and help the Northern Powerhouse read its full economic potential.

Certain areas of the economy are pushing growth more than others. The leaders of the Northern Powerhouse Partnership are researching and championing these industries. Sectors like the digital sector have seen immense growth in the last ten years. The top five growth clusters in the northern powerhouse are professional services, business services, digital, creative and logistics and e-commerce.

There are regional differences across the core cities; for example, digital services have been growing in Manchester and Leeds but not at all in the Humber region. Northern Powerhouse developments are also providing homes for these growing businesses.

The focus on boosting the northern economy is delivering tangible results. Recent evaluations show the Northern Powerhouse Investment Fund and its successor have now supported well over £1bn of investment into growing businesses across the north.

At the same time, the region is attracting increasing levels of international capital, with the Northern Powerhouse’s share and value of foreign direct investment projects rising over the last decade as global investors back major regeneration and infrastructure schemes.

This combination of government-backed funding and overseas interest continues to channel billions of pounds into northern growth deals and development projects.