A think tank has called on the Government to use the upcoming spending review to invest in the Northern Powerhouse, saying it would result in growth on a scale not seen since the Victorian era.
Analysis by IPPR North claimed economic underperformance in the north is neither natural nor inevitable. It said the economy of the three northern regions is worth £289bn and the rate of job creation in the North equalled the national average.
The report also found that if the North was able to halve the gap between its own economic output per head and the national level, then its economy would be £34bn (11.9%) bigger.
Ed Cox, Director of IPPR North, said: ‘The historical economic underperformance of the north of England is not natural, nor is it inevitable. We have seen past attempts at 'regional policy' fall by the wayside, but the Northern Powerhouse has momentum and has galvanised leaders in the North.
‘Investment, leadership and urgency are the key ingredients for turning northern powerhouse rhetoric into national economic prosperity. The momentum is building, the benefits are great - the opportunity is there to be seized for Northern prosperity to create national prosperity.’
However, there are barriers to improving performance, including low productivity, under investment in transport infrastructure, poor connectivity between cities and a weaker skills base.
