The Northern Powerhouse Independent Economic Review says digital technologies, health innovation, energy and advanced manufacturing have the potential to transform the North of England’s economy, adding £97 billion and 850,000 jobs by 2050.
The Northern Powerhouse Independent Economic Review, commissioned by Transport for the North and published today, identifies key capabilities across the North. The Review’s core messages could provide the foundations for closing a major gap in productivity, generating new jobs and enhancing global competitiveness.
John Cridland, the 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 is the new body that will have statutory authority for long term transport investment strategy in the North. TftN commissioned the Northern Powerhouse Independent Economic Review on behalf of the Northern Powerhouse partners. The review’s aim is 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.
The North’s four prime capabilities are Advanced Manufacturing, Digital Development, Health Innovation and Energy.
These are supported by three enabling capabilities that are vital if growth in these areas is to be successfully nurtured: Education, Logistics and Financial and Professional Services.
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, not least because this report is owned collectively by the North itself.
Commercial Secretary to the Treasury, Lord O’Neill said: “This Review represents a hugely important milestone for the Northern Powerhouse and supports this government’s commitment to rebalance the economy.
“As the Chancellor has said, the referendum result is even more of an instruction to deliver on our work to build a Northern Powerhouse and so it is hugely encouraging that the region’s leaders are working together to set out their long term priorities. We will continue to work together to make the North an even better place to live, work and invest in and remind the world that the region is open for business.”
Northern Powerhouse Minister James Wharton said: “We are committed to bringing together the great cities and towns of the North to become a powerhouse for our economy. This Review shows how this could create hundreds of thousands of jobs and deliver a multibillion-pound boost to the economy right across the Northern Powerhouse.”
The Northern Powerhouse Independent Economic Review was formally launched to business leaders and public officials from across the country during Liverpool’s International Festival for Business.