New report claims 850,000 jobs could be created by Northern Powerhouse

30/06/2016 | HIGHWAYS REPORTERS

The Northern Powerhouse could create 850,000 jobs by 2050, according to an independent review.

The Northern Powerhouse Independent Economic Review, which was published today (30 June 2016), identifies key capabilities across the North which could provide the foundations for closing a major gap in productivity, generating new jobs and enhancing global competitiveness.

John Cridland, chair of Transport for the North said: “This Review clearly identifies that, if the right investment and focus is put into these capabilities, and the infrastructure is there to support them, then 1.56 million new jobs could be generated by 2050. Close to a million (850,000) of these will be directly attributable to the success of the Northern Powerhouse and we would expect productivity (GVA) to be 15% higher than currently which, in itself would represent a major step-change for the North.”

Transport for the North, the new body that will have statutory authority for long-term transport investment strategy in the North, commissioned the Northern Powerhouse Independent Economic Review on behalf of the Northern Powerhouse partners to provide a clear picture of the economic landscape of the North in a national and global context and identify the major opportunities for economic growth.

Analysis has shown the North lags behind the rest of the UK, and in particularly behind London, in terms of productivity and jobs.

The North currently produces £4,800 less GVA (Gross Value Added) per person per annum and over £22,000 less per person than London. Yet it contains twice as many people as London (16m) and has clear potential to be a globally competitive Region. The Review has identified ‘capabilities’ in which the North is a world leader. These already account directly for 30% of the North’s jobs and 35% of its GVA and have clear capacity to drive future growth.

This is the first time such a comprehensive report has been commissioned for the North, and it marks a landmark development in the evolution of the Northern Powerhouse.

Cridland continued: “This Review will be fundamental for future planning. Central to powering the North’s future economy will be an efficient high capacity transport network capable of fully mobilising the workforce between the North’s key economic heartlands. The Review clearly identifies that such a network must be tailored and shaped to recognise emerging and sustainable strengths whilst acknowledging that many Northern jobs are in other service sector businesses on every Northern high street. In addition to this, improved education will also be vital in northern schools to give young people the chance to go for better jobs using the improved transport links we are delivering.”

He said that, to achieve such a transformational change, including major transport interventions such as a major new road or rail routes, “a step-change in investment strategy is required and long-term collaboration between key partners across the North, and with government and national agencies, will be essential if our joint ambitions are to be realised.”

Click here to download the Northern Powerhouse Independent Economic Review reports.

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