Powerhouse Perspective

Article posted on: 20 January 2025

In the latest instalment of Insider's Q&A series on the Northern Powerhouse, Chris Acton discusses what the initiative means to him, the challenges in bridging the gaps between smaller towns and larger cities, and why investing in skills is key.

What does the Northern Powerhouse mean to you?
For me, the Northern Powerhouse is a vision to create a more balanced and prosperous UK, with the North of England as a driver for economic and social growth.

The long-established concept of the Northern Powerhouse represents an opportunity to showcase regional talent and champion our thriving businesses, whatever the sector. It is a chance to put the North of England on the world map: to attract public and private investment into the region that has long been centred disproportionately on the South East and London.

As a multi-disciplinary engineering consultancy with a footprint across the region, we witness first-hand the impact that well-thought-out investment in people and places can have on Northern communities.

The aim of the Northern Powerhouse should be to better connect towns and cities, bolster the job market, and ultimately make the region an attractive area in which to live and work.

A decade has passed since the phrase 'Northern Powerhouse' was first coined. Has enough happened since then?
In the decade since the term 'Northern Powerhouse' was coined, some positive steps have been made. But, as ever in politics, things have got off to a slow start – and there is so much more to be done.

The expansion of devolution powers aided by the implementation of the metro mayors is a huge deal for the North. We now have decision-makers, with real power, who live and work in the cities they represent. That's a big leap forward for our communities.

However, challenges remain in bridging the gaps between our smaller towns and our larger cities, like Manchester and Leeds, which seem to have the lion's share of inward investment. This is creating a noticeable disparity between different areas – something that needs to be addressed.

When it comes to transport, there has been significant government investment in infrastructure outside of the North – with many billions given to projects in London, such as Crossrail. Yet, in the North of England, we have been fighting tooth and nail for long-term fiscal commitments to improve our ailing, Victorian transport infrastructure. With the disappointing – and ongoing – back and forth on HS2, and the gestating Northern Powerhouse Rail saga, government investment in infrastructure is where we're lacking in our region.

We need a long-term, concrete vision for the North of England that places interconnectivity, sustainability and job creation at the heart of infrastructure investment.

How is the appointment of metro mayors starting to help the initiative?
Our metro mayors, such as Andy Burnham, Steve Rotheram and Tracy Brabin, have an on-the-ground understanding of local people and their needs. They are the much-needed figureheads for the regional devolution we crave. The role of metro mayors in general is about having a voice that can stand up to the government to ensure they are accountable when it comes to redressing regional imbalance.

As said, investing in our outdated infrastructure is vital for economic growth: creating more opportunities for people and improving our communities, especially across the North of England. So, it's good to see local transport spending for Metro Mayors will rise in 2025/26 to £1.3bn, with £650m for local transport in regions outside of combined authorities.

I welcome the TransPennine Route Upgrade between York and Manchester, alongside updates to light railways, with Sheffield's Supertram and the West Yorkshire Mass Transit system earmarked for financial support.

The recent news that the government is introducing an integrated settlement for Greater Manchester from 2025-26 is encouraging. Simplifying devolved funding, providing greater control over spending, should have a tangible, positive and direct impact on communities.

We'd like to see integrated settlements and more autonomy allowed for a much broader area of the North - from Merseyside, Yorkshire, and Cumbria, through to the North East. If that funding can be channelled into regional infrastructure across the North of England, the opportunities for local construction companies in the supply chain could be vast.

What is the single main issue you would like to see dominate the Northern Powerhouse agenda?
Without the right people to bring the Northern Powerhouse vision to life, we won't get any further than we are today. Therefore, investment in skills is of the utmost importance.

Many of our towns and cities offer young people access to world-class education and training they need to secure high-quality jobs. This is key if we are to improve social mobility and reduce inequality. Manchester's graduate retention rate is second only to London, with 51.5 per cent of graduates staying in the city after finishing their studies. The city benefits from vast investment and excellent infrastructure, which goes some way to explaining why young people choose to stay.

Gone are the days of having to move South for work; the North offers good, if not better jobs, more affordable living, competitive remuneration and a great lifestyle.

In terms of the built environment and infrastructure, the Construction Industry Training Board (CITB) estimates a need for 152,000 more workers to meet housing targets, and the Home Builders Federation highlights that one in five builders is over 50, highlighting the lack of fresh talent in the sector. With infrastructure high on the Northern Powerhouse agenda, we need to train a pool of talent that can help plug this skills gap.

Encouragingly, the government's new quango, Skills England, aims to promote better cross-industry and education collaboration for skills investment in general. For the construction industry, we hope it turns policies into action so we can invest in more people.

Is there enough collaboration between towns and cities across the North?
There have been many efforts to promote collaboration between the North of England's towns and cities, with varying degrees of success.

As expected, combined authorities with metro mayors at the helm are leading the way. But that's not to say towns are being left behind. There is always ample opportunity to do things differently in the pursuit of growth. The region should strive for more collaboration to bring all communities on the same journey to rebalance the UK's economic inequality.

What makes one town successful is not necessarily the blueprint for others. It's about working closely together, sharing best practice, carving out local identities, and creating an environment that encourages competitive investment. Through this joined-up approach, we will begin to better position the North of England as the economic giant it truly is.

How would the success of the Northern Powerhouse agenda benefit your business?
A more vibrant and prosperous North of England will benefit our business in several ways. Investment in our infrastructure and housing will result in an increased demand for our services. In turn, this will enable us to attract and retain talent from inside and outside the region.

We must also remember that the North of England is no longer the traditional manufacturing and industrial region of old. We are now known for some of the most innovative sectors, including advanced manufacturing, clean energy and life sciences.

Build it and they will come, as they say. Investment in our infrastructure will open up the region for greater global investment into these leading, burgeoning industries. Talent will then follow.

Our engineering business, and our wider supply chain, is raring to go to conduct this vital investment in industry, the region's infrastructure and public services in the coming years.

 Read the article in Insider Media here.