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 attempting to form links between the cities and encourage joint ventures. On 6th July 2018, the minister for the Northern Powerhouse, Jake Berry MP, announced the creation of NP11. It will be a government-funded board made up of the leaders of the 11 Local Enterprise Partnerships.

The aim is to represent the various regions equally, encouraging them to advise and work with the government on strategies. The plan is to increase productivity and drive forward the Northern Powerhouse to fundamentally tackle the north-south divide.

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 creating positive results already. In 2015/16, projects increased by nearly a quarter compared to the previous year, twice the national average. Northern Powerhouse developments are being boosted by funding from the Northern Powerhouse Investment Fund.

It has also benefitted from international investments from countries like China and Saudi Arabia. Business people from around the world have been visiting to see the increasing number of Northern Powerhouse developments. As a result of this, £3.4 billion was allocated to the North through growth deals.