Northern Powerhouse: Devolution needed to tackle productivity challenge

Northern Powerhouse: Devolution needed to tackle productivity challenge

Adrian Lythgo, CEO of Kirklees Council and head of paid service on the West Yorkshire Combined Authority, believes that the North needs devolution to reach its true potential.

On current forecasts, the £56bn Leeds City Region economy - the largest outside London - is already on course to add £7bn and 50,000 jobs by 2021.  These are huge numbers, but they hide an inconvenient truth.

Whilst Leeds’ GVA per head of population is 116 per cent of the UK average, the GVA produced per worker - for both Leeds and the wider City Region - falls short of the UK average.

We have a productivity challenge that cannot be addressed by the currently centralised system, but only by devolving powers and resources to increase the return on investment and shorten the timescales for transforming the City Region from a net beneficiary into a net contributor to the public purse.

We take very seriously our responsibility to contribute meaningfully to overall national debt reduction by delivering a sustained ‘devolution dividend’.

To deliver a transformed north, we will need strong, empowered cities and city regions.  This City Region proposition for devolution is the local counterpoint to pan-Northern proposals, including our shared One North proposition.

So what will we deliver by 2021? Our devolution proposal will deliver the full extent of the ambition contained within our Strategic Economic Plan (SEP) which is to unlock the potential of the City Region, accelerating growth and thereby delivering an economic powerhouse that will create more better jobs and prosperity for all to share.

This challenging ambition is grounded in realism but our track record is strong and shows that devolution rather than more decentralisation really delivers.

We will do it by focusing on three key priorities for achieving an extraordinary level of sustained economic growth to national benefit:

- A transformational Leeds City Region metro system to maximise the impact of HS2;

- Housing growth and regeneration infrastructure for a 21st century economy; and

- Jobs for all in a NEET-free, innovation-led city region.

As part of our City Deal, a combined authority (CA) has been established for the area of West Yorkshire.  This includes York as a partner member and also the Local Enterprise Partnership (LEP), alongside the West Yorkshire leaders and opposition members, on one strong board of equals spanning both the private and public sectors.

Our CA and LEP are united behind a single Strategic Economic Plan and our strategic investment decisions are taken within a single appraisal framework.  By introducing this stable, robust and accountable governance model, we have created the conditions in which we can build on the successes mentioned earlier and deliver effectively our Growth Deal and maybe more.

Northern Powerhouse webcast - 10 December

As the drive to create a real financial and political powerhouse in the North of England gathers momentum, Insider has assembled a stellar line-up of speakers to discuss the big issues at our sell-out event, and we're inviting readers to join us via live webcast.

The event forms part of our Northern Powerhouse campaign as Insider throws its weight behind the push for the north to become a real force again in UK decision-making and investment.

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