Private sector must be ‘lead player’ in building the North’s net zero economy

Decarbonising the North’s industrial sector can be largely funded by the private sector, according to a new report by business-led thinktank the Northern Powerhouse Partnership (NPP). The report builds on new analysis from Cambridge Econometrics which shows that industrial decarbonisation and reducing emissions from real estate are the sectors offering the highest potential private investment leverage overall. The report suggests that for every £1 of public money invested, at least £4 can be generated from the private sector, demonstrating the substantial economic benefits of these initiatives.

This analysis comes as South Yorkshire’s Mayor, Oliver Coppard announced the creation of SY Energy, a partnership with the private sector and academics that will maximise investment, jobs and supply chain development in the area’s leading clean-tech sector.

South Yorkshire has unique strengths in Small Modular Reactors, Hydrogen and Sustainable Aviation and is aiming to become the natural home for these emerging sectors. SY Energy will work to de-risk investment decisions for clean-tech businesses together with the South Yorkshire Mayoral Combined Authority who will help to attract talent and develop targeted skills programme. Businesses will also be supported to grow and build links with other regions and businesses in the UK and across the world.

Across the North, private funding that can be attracted to industrial decarbonisation includes £15bn across the Humber for bioenergy initiatives with £2bn specifically allocated for carbon capture and storage (BECCS) technology at Drax power station in Selby. This is alongside £5bn towards HyNet’s hydrogen clusters on the Mersey as well as separate further investment on the Tees.

For the overall net zero economy, it is projected that at least £2.65 could be leveraged for every £1 of public money. This includes a greener transport system and renewables such as offshore wind and nuclear energy. The lowest leverage estimated is in land use.

On a project-by-project basis, areas funded by the new wealth fund will need to achieve a leverage ratio of 1:3 ratio, meaning £3 of private investment for every £1 of public funding. NPP also supports the use of Treasury Guarantees by the bank to invest pension fund monies. This would require no up-front government help, making it easier to exceed the leverage ratio and maximise investment impact.

This new report builds on the Northern Powerhouse Independent Economic Review Scenario, which showed investing in net zero could deliver £23bn more in GVA and over 168,000 additional jobs to the Northern economy. Crucially, this would deliver a much-needed boost to the North’s historically sluggish productivity equal to £1,500 per worker.

The report also warns that the North of England, which produces nearly half of the UK’s electricity, and is home to half the country’s most carbon-intensive clusters, is uniquely vulnerable to a botched transition to net zero. The Humber alone represents 40% of the UK’s industrial emissions.

Instead of offshoring our emissions to reach net zero targets artificially, we need a decarbonisation strategy to protect workers in key industries such as steel. In Scunthorpe the future of two blast furnaces were jeopardised by a failure to deliver a carbon capture pipeline sooner, and the North can’t risk similar mistakes in the future.

The report’s other recommendations include:

1. GB Energy to deliver the UK’s first orders for a fleet of small modular reactors (SMRs)
2. Develop our offshore wind and tidal supply chain
3. Push ahead with carbon capture use and storage (CCUS) on the Mersey, Tees and Humber
4. Retrofit domestic and commercial buildings with heat pumps manufactured here
5. Electrify the railways and produce SAF for the aviation sector

Henri Murison, Chief Executive of the Northern Powerhouse Partnership, said:

“The private sector needs to be the lead player in decarbonising our economy and investing in emerging green sectors.

“Billions in private investment is ready to flood into the North’s net zero economy.

“The North of England bore the brunt of the UK’s last rapid de-industrialisation – which took place without a plan to protect workers – which is why we need to stop artificially reducing emissions by moving our heavy industries overseas.

“With the right plan, delivered well, we could use the net zero transition to drive our region’s economy and close the North-South divide for good.”

South Yorkshire Mayor, Oliver Coppard, said:

“South Yorkshire is already home to the largest clean-tech cluster in the UK and at the forefront of nuclear tech, hydrogen and sustainable aviation fuels. We’re leading the way on Small Modular Reactors, with Rols Royce SMR recently selecting South Yorkshire as the home of their new, multi-million pound, SMR facility.

“SY Energy will build on these strengths and make our region the natural home of clean-tech businesses, both nationally and internationally. We’ll do this by bringing the sector together to maximise investment, jobs and supply chain development

“SY Energy will support businesses, working collaboratively to increase manufacturing capacity and capabilities of local supply chains through attracting talent and improving local skills provision. It will also support businesses to grow and expand and help build links across the industry nationally and internationally

“As the report from the Northern Powerhouse Partnership makes clear, the transition to net-zero can be accelerated and help us create bigger and better local economies – if we work together to unlock the potential of the private sector.”

Tracy Brabin, Mayor of West Yorkshire, said:

“Here in West Yorkshire, we’ve invested over £200 million in green projects, working with partners to deliver warmer homes, greener businesses and better public transport options. But to truly deliver at scale and at speed, we must now work in lockstep with the new government and the private sector, to empower our green sectors and revolutionise our region.

“By partnering with businesses and industry, we’ll create a greener, more secure region for future generations”.

Steve Rotheram, Mayor of the Liverpool City Region, said:

“As the UK’s Renewable Energy Coast, the Liverpool City Region has an enormous role to play in developing the net zero economic and driving national growth.

“Our Mersey Tidal Power scheme is the largest tidal energy project in the world, capable of powering up to 1 million homes for more than 120 years. Working hand in hand with national government and the private sector, we can deliver on Great British Energy’s promise to make Britain a clean energy superpower.

“For too long in our history, the North has been left behind when it comes to national investment in infrastructure and innovation. From our green jobs and skills plan and work to develop pioneering projects like HyNet and Glass Futures, I’m confident that we will be front and centre in the Green Industrial Revolution.”

Mark Burton, Lloyds Baking Group Ambassador for Yorkshire, said:

“In the North of England, we are at a critical juncture in advancing our Net Zero economy. Northern businesses have consistently led in innovation and progress, and their steadfast commitment to sustainability not only drives economic growth but also ensures environmental stewardship.

At Lloyds Banking Group, we are proud to support this ambitious strategy, fostering collaboration with businesses and communities to unlock private sector investment and generate sustainable growth. By investment and generate sustainable growth. By investing in emerging sectors like small modular reactors, hydrogen, and sustainable aviation fuels, and supporting key supporting initiatives such as carbon capture and storage and retrofitting buildings, we can transform challenges into opportunities.

“Together with government and industry partners, we are set to build a resilient, sustainable Northern Powerhouse that is not only sustainable but prosperous for generations to come”.

Rolls-Royce SMR’s Government and Corporate Affairs Director, Alastair Evans, said:

“This report demonstrates how infrastructure projects can successfully ‘crowd-in’ investment – a model we have used to establish and grow the Rolls-Royce SMR business.

“Our future domestic growth will be spurred by our success in the Great British Nuclear small modular reactor (SMR) selection process, with an announcement on successful technologies expected before the end of the year. Our success in this selection will unlock enormous potential for investment in the north and beyond.

“Rolls-Royce SMR already has its headquarters and regional office in the North West and recently announced an investment of up to £15+ million in a module development facility in Sheffield, so is already heavily committed to building the North’s net zero economy.”

Read the full summary and analytical reports below

Net zero summary report

Net zero analytical report

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There are signs of a productivity resurgence in pockets of the North of England, according to researchers at the Northern Powerhouse Partnership business-led thinktank.

Both the North East and the North West, along with the South East, have outperformed average productivity growth across England between 2022 and 2004 (when data was first available).

Although London’s productivity growth over this period was the second lowest in England (after the East Midlands), it remains the most productive region in the UK, with productivity around 27% higher than UK average in 2022. It was 33% higher than average in 2004.

The North’s success has been concentrated in a few key areas, with Greater Manchester seeing a 26.4% increase – the largest increase in the country. This has been largely attributed to substantial improvements to transport connectivity across the city region, as well as ambitious and strategic local leadership.

The Humber, the most carbon intensive industrial cluster in the UK, has also seen strong productivity growth over the past two decades. The region has embraced opportunities in the energy transition, attracting international businesses such as Siemens and Phillips 66.

West Yorkshire, Northumberland and Tyne and Wear, as well as the Tees Valley and Durham (14.2%) were the only other Northern subregions to outperform the average productivity growth across England.

The UK’s longstanding productivity problem is well known: our growth is weaker than most of the G7 and this has worsened since the 2008 financial crisis.

This is in large part driven by the underperformance of the regions outside London and the South East, which has contributed to some of the most significant regional divides in the world.

The Northern Powerhouse economic was set up by then Chancellor George Osborne in June 2014 to address this issue, inspired by findings from the Cities Growth Commission led by renowned economist Lord Jim O’Neill.

Boosting productivity would not only boost tax revenue for the Treasury, it would mean higher wages and better living standards for people across the North.

The Northern Powerhouse vision focused on the key drivers of economic growth, including transport, education, skills, innovation, and devolution.

The aim was to create a whole greater than the sum of its parts by linking the great towns and cities of the North into one cohesive economic geography and empowering local leaders to drive long-term economic change.

Lord Jim O’Neill, Chair of the Northern Powerhouse Partnership, said: “While London’s productivity growth has been weak in recent years, particularly since the pandemic, Greater Manchester and the wider North West is continuing to improve – and that has appeared to have accelerated since COVID.

“Since the IRA bombing in 1996, the local leadership in Greater Manchester has been laser-focused in delivering a consistent, ambitious economic vision targeted at inward investment and key productivity drivers such as transport is paying dividends now.

“With the right focus and determination, other city regions – many of which alongside Greater Manchester continue to lag behind – could see the same kind of progress. This would not only be a victory for these local economies themselves and the local workers who will benefit from higher wages, but will deliver a massive boost to the UK economy as a whole.

“It goes without saying that a more stable and committed policy towards England’s regions from the next government, whoever it is, should enable further positive progress.”

Tracy Brabin, Mayor of West Yorkshire said: “The regions outside of London are packed full of potential that has gone untapped for too long.

“Boosting productivity and closing the North and South gap should be a priority for all as it will create more jobs and put more money in people’s pockets.

“Devolution is allowing us to rebalance our economy and deliver the growth our country desperately needs.

“As Mayor I am bringing investment and opportunity to all parts of our region. But with greater devolved powers for the North we can go further and faster, delivering a brighter future for all.”

Read the full report below.

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Rolls-Royce SMR is setting up a multi-million pound facility in Sheffield, UK, to manufacture and test prototype modules for its small modular reactors (SMRs).

The Rolls-Royce SMR Module Development Facility – housed within University of Sheffield’s Advanced Manufacturing Research Centre’s existing Factory 2050 facilities – will produce working prototypes of the individual modules that will be assembled into Rolls-Royce SMR power plants.

The first phase, announced today, is worth £2.7 million and will be part of a wider £15+ million package of work that will further de-risk and underpin the Rolls-Royce SMR programme. The modular approach is unique within the nuclear industry but is widely used and well proven across the oil and gas and renewables sectors.

The Rolls-Royce SMR is UK’s first home-grown nuclear technology for over a generation and today’s announcement is another vital step towards deploying a fleet of ‘factory-built’ nuclear power plants in the UK and around the globe.

Victoria Scott, Rolls-Royce SMR’s Chief Manufacturing Engineer, said: “Our investment in setting up this facility and building prototype modules is another significant milestone for our business.

“Our factories will produce hundreds of prefabricated and pre-tested modules ready for assembly on site. This facility will allow us to refine our production, testing and digital approach to manufacturing – helping de-risk our programme and ensure we increase our delivery certainty.”

Secretary of State for Energy Security and Net Zero, Claire Coutinho, said: “Small Modular Reactors are the future of nuclear technology, and key to quadrupling the UK’s nuclear capacity by 2050 as part of the biggest expansion in 70 years.

“This multi-million-pound SMR manufacturing facility will be fantastic for Sheffield – making the Steel City once again the home to world-leading industry.”

Professor Koen Lamberts, President and Vice-Chancellor of the University of Sheffield, said: “We are very proud that Rolls-Royce SMR has chosen to base its Module Development Facility at our Advanced Manufacturing Research Centre’s Factory 2050.

“Today’s announcement is a testament to the University’s strengths in clean energy research and innovation, and our unrivalled expertise in developing leading-edge manufacturing techniques. We welcome this significant commitment from Rolls-Royce SMR to our ongoing partnership and the South Yorkshire region.” 

South Yorkshire’s Mayor, Oliver Coppard, said: “This announcement cements South Yorkshire’s position as the leading place to build small modular reactors, a cutting-edge technology which will be a key part of the global transition to clean energy.  It is also a sign of real confidence in our region’s world-leading advanced manufacturing innovation district which is helping us to create a bigger and better economy in South Yorkshire.   

“South Yorkshire is proud to be the home of the largest Clean Tech cluster in the UK, with specialisms in nuclear tech, hydrogen and aviation fuels. Being chosen as the home of the new Rolls-Royce SMR Module Development Facility further enhances our region’s reputation as the best place for Clean Tech in the UK and puts us at the forefront of creating a greener future for the UK and beyond.”

Rolls-Royce SMR offers a radically different approach to delivering new nuclear power based on proven technology. Each of the factory-built nuclear power stations will provide enough low-carbon electricity to power a million homes for more than 60 years.

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Unfair and outdated council tax bands mean that Northern households are overpaying by £250 a year on average, a total of £1.2bn, according to new modelling from NPP and Open Innovations.

Uneven changes in the UK property market over the past three decades mean that someone living in a house in Hartlepool worth £150,000 pays over £200 a year more in council tax than a person in Westminster in a property worth £8million according to campaign group Fairer Share.

A property in Gateshead will likely see their council tax bill go up by over £116 this year, compared to £45 in Westminster.

The Levelling Up, Housing and Communities Select Committee recently urged the government to begin the long-overdue revaluation of properties as part of wider reform to local government financing.

The Secretary of State for Levelling Up, Housing and Communities Michael Gove told a select committee hearing in December that “every party will want to put forward probably in its manifesto proposals for improving local government taxation.” He has said in the past that council tax is “regressive”.

The tax rate as a share of value for a band A property is about five times, on average, what it is for a band H.

Long-term reform

Work should begin immediately on a revaluation of all properties in England before the General Election. At the very least, a localised re-banding – which would maintain the current proportion of properties in each band for each council – would bring valuations into the 21st century with a revenue neutral approach.

While this is an important first step, it would still leave many in the most deprived parts of the country overpaying.

We should therefore consider introducing three new council tax ‘super bands’ for properties worth more than £2 million, paid by the owner not occupier. This could generate £9billion, raised mainly from houses in central London, assuming a 8x multiplier on properties over £2million, 16x multiplier on properties over £10million and 32x multiplier on properties over £20million.

The revenue gained from these super bands would be shared across the country through a cast-iron transfer system, replacing the local government settlement. Open Innovations has developed a tool which allows local authorities to see what this new system could mean for their area

Local authorities are facing a £4bn funding gap over the next 2 years to maintain services at current levels, according to the Local Government Association.

The Office for Budget Responsibility (OBR) reported following the Autumn Statement that unprotected day-to-day departmental spending, which includes core funding distributed by the Department for Levelling Up, Housing and Communities to local authorities, would need to fall by 2.3% per year in real terms from 2025–26.

Henri Murison, Chief Executive at the Northern Powerhouse Partnership, said:

“Michael Gove himself has said that council tax needs reform.

“The current system is inherently regressive and unfair, with too many properties banded too highly, and vice versa, due to outdated figures. With a quickly growing number of councils filing – or close to filing – for bankruptcy, the government should announce a revaluation, which is now more than 20 years overdue, at the spring budget. 

“Far reaching reform of the council tax is needed alongside a wider package of fiscal devolution, with cast iron transfer mechanism – independent of ministers – to ensure less prosperous areas can still pay for key services such as social care. 

“This is vital to help get local government financing on a more secure footing and to reduce dependency on the Treasury in the long-term.”

Andrew Dixon, Chair of Fairer Share, said:

“Council tax places the greatest burden on the young, low-earners, and residents in less prosperous regions, while benefiting wealthy homeowners and property investors. Those who have benefited the most from house price increases have also been the biggest beneficiaries of the council tax system.”

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By Michelle Lambon-Wilks, Head of Education & Skills Sellafield Ltd

It’s an exciting time to be asked to take up the reins of Education and Skills at Sellafield Ltd.  As our business changes from a focus on reprocessing spent nuclear fuel to remediation and decommissioning our legacy facilities, we continue to recruit large numbers of apprentices and graduates on an annual basis. The reskilling of existing employees is also coming to the fore.

We have a responsibility to ensure that the site is able to continue its 100-year clean-up work safely and securely, using innovative techniques employed by our skilled workforce and supply chain partners.

To carry out this nationally important work requires carefully managed, world first engineering projects, and most importantly, the development of our people, as well as the education of future workers, which is crucial to our success.

Ensuring we have a pipeline of the right skills is an area we identified a number of years ago. To develop that area, we have invested heavily in projects that benefit not just the industry but also support our communities and local economic priorities.

For example, in West Cumbria we have created a Project Academy, and helped to facilitate a University Technical College (UTC) and the National College for Nuclear Northern Hub. We also played a crucial role in the development of two new schools in Whitehaven, while in Warrington we have focused on engineering including support to the Warrington UTC. The list goes on.

Meeting the challenge

Sellafield in West Cumbria is the UK’s largest and most complex nuclear site, undertaking the unique and nationally important work of cleaning up the country’s highest nuclear risks and hazards while safeguarding spent nuclear fuel, materials, and waste.

With an annual £2.3 billion budget, Sellafield Ltd is the operating company with the responsibility for decommissioning the site, safely and securely, with the help of an 11,000 strong workforce and with the support of more than 40,000 people across a diverse and unique supply chain.

Achieving our purpose of creating a clean and safe environment for future generations will rely on us having a fully engaged workforce that includes the right people, in the right roles, at the right time.

As such we operate as a major employer in our communities.  This year, we have continued our commitment to training the next generation of nuclear experts through our intensive apprenticeships, graduate, and lifelong learning programmes.

Our investment in skills and providing meaningful employment means that we are actively engaged at all levels of education and training – currently we have over 1100 learners on our various schemes.

This breaks down into over 612 vocational apprentices, 330 graduates, 112 degree apprentices as well as a number of lifelong learning and industrial placement students.

The company is part of the Nuclear Decommissioning Authority (NDA) group, which is responsible for decommissioning the UK’s 17 earliest nuclear sites safely, securely, and sustainably.

The NDA has a proven track record in investing in career development, from apprentices and graduates, to training the existing workforce.

Investing in the community

Thousands of careers have started within the group over several decades and each year they invest over £45 million in apprentice and graduate development alongside investment in the wider skills infrastructure, both in site communities and the broader education sector. Currently, the NDA group has over 1,000 people following its early careers programme.

However, the work doesn’t stop there. My passion and focus over the next year will be centred on educational outreach. At Sellafield Ltd we are keen to work with our local stakeholders on reaching out and into deprived areas. And to help those that haven’t had the opportunity to reach their full potential and achieve their ambitions. 

We have seen first-hand the impact of place-based education initiatives and we want to be visible and accessible to our local communities.  I myself want to ensure parity for learners – every learner is important to us whether on work placement, industrial placement, on one of our educational programmes or as an existing employee on a development programme. 

I want to create a clearly understood talent pipeline from primary school through to retirement. And make the various opportunities to access our employment opportunities both visible and easier to understand for schools, parents, and learners alike.

If we’re serious about driving up productivity in the North of England, we need a highly skilled workforce, equipped with the tools to build the industries of the future. Investing in future generations remains the key to unlocking growth and levelling up.

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By Tom Bridges, Arup UK Government & Innovation Lead & Leeds Office leader

A year ago, the UK government set out its long-term ambition for increasing prosperity and opportunity through twelve national levelling-up missions, a far-reaching programme of devolution, place-based investment in research and development, and major urban regeneration projects.

In November’s Autumn statement, the Chancellor set out further measures to bring greater local powers and investment, with an emphasis on the North of England.

It is in places such as the Humber where the success or failure of levelling-up will ultimately be determined. While the region performs below the national average on economic and social indicators, it has huge growth potential.

With huge opportunities for growth in the Humber around advanced manufacturing, clean-tech, green energy, and digital and creative industries, and leveraging the assets of the area’s freeport and universities, it’s an exciting time for this part of Yorkshire and Lincolnshire.

The region’s unique geographical position, industrial capabilities, and innovative businesses have created a huge opportunity to lead the UK in the green industrial revolution and to net-zero.

Devolution is no longer a concept in the Humber. Local powers have been granted and collaboration is very much underway. The area has seen significant public sector investment, with £184.6m of Government funding confirmed in the last 18 months. Highlights includes the Humber Freeport with £15m seed capital, and £66m across the Towns Fund projects in Grimsby, Goole and Scunthorpe, with major infrastructure projects such as the East Coast Cluster focused on hydrogen and carbon capture, and the improvements to the strategic road and rail networks.

Devolution in practice is gaining real momentum. There are plans for a Humber Economic Plan to be collectively developed by Combined Authorities in the region, with an accompanying Investment Strategy. A Net Zero Strategy will be produced by the Humber Energy Board and partners, with an observer from the Department of Energy, Security and Net Zero, supporting. The UK government is also considering relocating roles closer to policy issues they are addressing.

Arup has worked in the Humber for many years. Our firm has been involved in some of the most significant growth projects in the area, including helping to regenerate Hull’s city centre for City of Culture, designing Siemens Mobility new train manufacturing facility in Goole, supporting Grimsby to secure the first Town Deal in England, advising on the proposed advanced manufacturing park at Scunthorpe and working with Hull on improving water resilience through the Rockefeller Foundation 100 Resilient Cities initiative.

Most recently we worked with Metsä Tissue to create their first paper production facility in the UK in the region. We also supported British Steel as it unveiled its Low-Carbon Roadmap in 2021, to invest in a range of technologies to deliver net-zero steel by 2050, and significantly reduce its OC2 intensity by 2030 and 2035, which would put the Humber on the map in terms of green credentials.

There is potential for the Humber to act as a testbed and exemplar for boosting economic growth through decarbonisation. As it stands, the region accounts for 37% of the UK’s industrial and process carbon emissions.

Achieving decarbonisation milestones would give the Humber an opportunity to export its expertise globally too: 60% of the world’s population and two thirds of the world’s largest cities are in estuary or port regions, meaning the Humber experience can lead learnings internationally.

The Humber, like other regions, is competing for investment on the global stage. That is why it’s essential to have a shared vision and a shared, investor-focused voice.

We only need to look to the Siemens Mobility train manufacturing plant in Goole which will support as many as 700 jobs, the world’s largest offshore wind operations and maintenance centre developed by Orsted in Grimsby, or Reckitt’s £200m investment in its major science and innovation centre in Hull to see that the private sector is recognising the Humber’s potential.

If you travel merely one decade back in time, the Northern Powerhouse was launched as a partnership, a concept about growth and opportunity in key regions across the North of England. The investment seen by government, paired with local authorities and major businesses now striving towards shared goals, means that the prize is now closer than ever.

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The Treasury pays a heavy price for the Northern economy’s continued underperformance. Our analysis of ONS data has found that the North’s productivity is roughly 40% lower than that of London and the South East, with Northerners earning £8,400 less a year on average.

Our key asks for the Spring Budget 2024 include:

1. Increasing funding for long-term disadvantaged pupils by £1,000 per pupil.

2. Bolstering local government financing through a revaluation of all domestic properties in England in the immediate term and council tax reform in the long-term.
   
3. Extending and deepening devolution, extending a single funding settlement to new Level 4 mayoralties. Metro mayors must also become more fiscally autonomous, with full business rates retention and the ability to introduce a tourism tax.
   
4. Reforming our rigid fiscal rules to support long-term infrastructure investment.

Read our full submission below.

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A joint statement from the Northern Powerhouse Partnership and Trades Union Congress

Transport infrastructure is the backbone of a productive, prosperous economy.

Today (Tuesday 14 November) we are convening experts and policy-makers with Government and Labour leaders to discuss a new, more strategic approach to delivering major rail projects.

We are pleased that the Rail Minister has listened to concerns from Metro Mayors, civic leaders, businesses, and unions by protecting legislation for the crucial section of new track between Manchester Piccadilly and Manchester Airport, which constitutes the first phase of Northern Powerhouse Rail (NPR).

This has saved us from adding many years to the project’s completion date. Now it can and must be accelerated to keep certainty for the supply chain, as HS2 Phase 1 is built in the coming years.

The plan to link up the great cities of the North through transport connectivity is vital for connecting jobs and businesses to working people. This is at the heart of the Northern Powerhouse economic mission.

We cannot afford any more delay. We must seize this moment to a message to investors and business around the world that the North of England remains an unrivalled opportunity for strong, sustainable growth delivering high skilled, well-paid, unionised jobs.

We need immediate progress on improvements between York and Newcastle (which await approval), electrification between Selby and Hull (which needs work re-started) and a new Bradford station with an agreed cost. New lines will be built in time but in the first instance we need to deliver these immediate upgrades.

Equally, we need to find the right solution for improving connectivity between the Midlands and the North, including between Birmingham and Manchester, and Leeds and Newcastle. Holding off on land sales would not only avoid government making a loss on blighted land, it would give us time to consider critical technical questions and ensure we do not close off options for future development.

We are ready to learn the lessons from previous projects – both successful and unsuccessful – and to look at new delivery models and funding approaches which could help to deliver schemes more efficiently.

Those of us gathered here today – trade unions and businesses convened by our metro mayors – seek a new consensus across the North and the UK.

We need a stronger model of working that brings together business, unions and government to deliver large-scale infrastructure projects that are underpinned by good quality jobs.

This means a National Infrastructure Commission that is more independent and able to assure productivity and the debt burden implications of its recommendations.

We also need the National Infrastructure Commission to be more connected to local communities and to allow those relying on its work to secure private and public investment to sustain and create many more new workplaces.

Maintaining certainty in the face of political and economic instability as well as avoiding significant changes to agreed routes would help us deliver projects on time and to budget.

It’s time to return to the ambition of our predecessors – the Victorians who built infrastructure like the world’s first rail network which we continue to benefit from more than a century later.

We owe it to future generations to get this right, to build a more productive future which delivers more opportunities and more fulfilling lives for Northerners than what they can expect today.

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Business and education leaders are calling for urgent reform and investment for vocational education, amid reports of chronic skills shortages in the economy.

A Level, T Level and BTEC students will receive their final results this Thursday. However, there are serious concerns about whether further education is able to meet industry need without far-reaching change.  

T Levels were introduced in 2020 to provide a vocational qualification with the same prestige as an A Level but rollout has been far from straightforward.

The programme was recently given a red rating by the Infrastructure and Projects Authority, meaning “there are major issues with project definition, schedule, budget, quality and/or benefits delivery, which at this stage do not appear to be manageable or resolvable.”

Courses have suffered from high dropout rates according to a recent report from Ofsted, with many students feeling “misled and ill-informed about their content and structure.”

One problem has been with the work experience element. Although businesses have welcomed a greater focus on vocational education, there has been a lack of industrial placements for digital, construction, and health and science courses.

Some employers have even stopped the placement halfway through, leaving students unable to complete the course.

Skills Minister Rob Halfon told the Education and Skills Select Committee last December that he “would rather be straight with the Committee than try to say that everything is all wonderful.”

^{Skills Minister Robert Halfon}

There are also concerns over the future of BTEC courses.

Currently, students who do not meet the tough admission criteria to access T Levels are able to choose BTECs instead. However, BTEC courses which overlap with T Levels will lose their funding in 2025, leaving many young people without a further education pathway.

A recent cross-party group of Lords including former education secretary David Blunkett have called these plans “disastrous”, saying they would have a damaging impact on social mobility, economic growth and public services.

Henri Murison, Chief Executive of the Northern Powerhouse Partnership, and Darren Hankey, Principal of Hartlepool College, explain why changes are needed…

It is worrying that vocational education is often seen as the poor relation of academic studies. Investment in people is just as important as physical infrastructure and whenever we speak to businesses about the problems they face, we often get the same response: skills, or a lack thereof.

Making sure a young person in Bradford can get to a good job in Leeds or Manchester is only half the battle – they need also to have the necessary training and experience to secure that work in the first place.

This is where T Levels come in.

Many business and education leaders agree that these new qualifications could be part of the solution to tackling widespread skills shortages, particularly here in the North of England.

Unfortunately, they are suffering from what the Ofsted chief inspector has described as “teething issues”: high dropout rates, huge pressures on colleges and problems with industrial placements.

Addressing these challenges will require a joint effort from government and business.

A good first step would be for the Department for Education to cede control to those better placed to deliver, like powerful policy and delivery boards.

Alongside this, devolving more of the skills system to local leaders who are better able to join the dots with local industry need could be a gamechanger. Government has made a good start with this in Greater Manchester and the West Midlands but we need to go further and faster in other parts of the country.

We also need to see funding maintained for BTECs past 2025 as these courses remain a vital skills pathway for young people who do not meet the strict entry criteria for T Levels.

Vocational education in all its forms needs serious reform and investment. It cannot be an afterthought.

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Greater Manchester is experiencing the beginning of a productivity resurgence as new analysis from economic consultancy Metro Dynamics the Northern Powerhouse Partnership (NPP) shows the city region’s productivity growth outstripping that of comparable Northern cities and closing the gap with London.

Economic success has not been limited to the city centre. Evidence shows that income and productivity growth is being felt across Greater Manchester more widely thanks to investment in intracity transport connectivity, supporting the argument that towns are helped – not hindered – by links to nearby cities. 

Manchester’s Metrolink tram network, which was opened by the late Queen in 1992, has played a pivotal role in transforming the city region’s economic fortunes over the past three decades.

As well as driving up wages and productivity, house prices within half a mile of Bury’s tram stop quadrupled between 1995 and 2021.

The only boroughs not to have felt the same level of productivity and income growth are those in the north west of the city region which are not connected to the tram network, such as Wigan and Leigh – Mayor Andy Burnham’s former constituency.

This will prompt a debate on how the forthcoming roll out of the Bee Network – Greater Manchester’s vision for an integrated London-style transport system – could help these places.

Devolution is also thought to have played a key role in supporting the city’s economic transformation. 

In 2014, Greater Manchester became the first English city region outside London to secure a devolution settlement, after the combined authority was brought together at the end of New Labour’s term in office.

More recently Greater Manchester Combined Authority secured further powers and flexibility in a ‘trailblazer’ deal, including 100% business rates retention and key responsibilities over the adult skills programme.

NPP’s new Chair Lord Jim O’Neill, who as Treasury minister helped to design the original Northern Powerhouse vision with then Chancellor George Osborne CH, says the data is proof that their model – based on agglomeration and empowered local leadership – works.

Lord Jim O’Neill, Chair of the Northern Powerhouse Partnership, said: “The recent productivity growth across Manchester, and Greater Manchester even more so, means that the gap with London is now starting to close.

“We’re now seeing signs that addressing transport, with a consistent focus on securing agglomeration benefits, is starting to bear fruit.

“Building on and replicating Greater Manchester’s success across the North, and scaling it to create an effective pan-northern labour market, is key to solving our overall productivity challenge.”

Mike Emmerich, Founding Director of Metro Dynamics, said: “Some have assumed that Manchester’s success has been limited to the city but this is evidence that productivity growth has been spread much more evenly across most of the whole city region, specifically those areas which have received investment in transport.

“Over the past three decades, Greater Manchester has taken a consistent and common economic and investment strategy including on transport, and we’re now seeing the green shoots of a productivity resurgence as a result.

“It’s perhaps no surprise, therefore, that many other city regions across the North and England more widely have decided to follow the same course.”

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