Across the UK, there are deep-rooted inequalities reflected in income, skills, living standards and life expectancy. These inequalities are so vast that the UK is recognised as one of the most regionally imbalanced economies in the industrialised world. As the UK embarks on its independence from the EU, tackles climate change and embraces the Fourth Industrial Revolution (IR4.0), these trends have the potential to expand divisions further, unless harnessed to provide economic opportunities.
A systemic change is required to ensure that the North West maximises its potential and the “Levelling up Agenda” provides a pathway to success. The Northern Research Group (NRG) is a group of 50 or so Conservative MPs who have big ideas for a “global Britain”, envisaging the North as an attractive landing pad for foreign investors, new business, highly paid jobs and international trade. The government have recognised this with the levelling up fund – a £4.8 billion investment, across the country.
To promote investment, cities, towns and surrounding areas need to be attractive places to work and live. The levelling up fund can support smaller towns to revive local business and rejuvenate a sense of community. This is especially important for rural towns and coastal villages considered “left behind”, in comparison to the development we see in major towns and cities. And, this is where the VCFSE sector has a part to play.
Many community facilities are operated by VCFSE bodies. A large number have suffered from a lack of investment and, in 2020, lacked income to meet day to day expenses – let alone embark on an upgrade. The being a good place to live agenda is one that the sector can lead on.
The North is home to a strong manufacturing base. The manufacturing sector provides a significant portion of the UK economy, contributing over 10% of domestic product, and totalling 44% of the UK’s exports, which translates to a £273 billion contribution to the UK economy. As the world undergoes a fourth industrial revolution, it is vital that the sector receives supportive policy and financial investment via the levelling up fund, in order to innovate and compete globally. If the North has a world-leading manufacturing industry that has embraced IR4.0, the region will see the creation of jobs, new skills and private investment. Again, this is where the VCFSE sector has a part to play.
There are reports that suggest that unemployment, in the UK, has not increased at the project rate resulting from Covid. Undoubtably the furlough scheme has assisted in this. But there are indications that a lot of migrant workers, from the EU, have returned to their country of origin if they have been made redundant or furloughed. This will have an effect on the ability of industry and commerce to “bounce back” when the upturn comes. The VCFSE sector is well placed to reach “the hard to reach” who will likely to be crucial to recovery of the economy. Those engaged in training and job readiness sectors are encouraged to ascertain the skills that will be needed, in the main workforce, going forward. The levelling up fund could be a route towards funding premises improvements to enable this.
The levelling up fund will also support physical connectivity in the North. The region has a number of airports with potential to connect the North on a global scale; however, these airports and surrounding communities require investment to capitalise on their potential. A “hub-and-spoke” approach is being advocated to connect business hubs and demonstrate the ease of connectivity, making the region a more attractive place to do business. There are regular announcements of new logistics parks being planned for the North West. How can sector partners engage with the training requirements for these – or even operate cafes etc for hauliers?
2020 taught us that we are more adaptable and resilient than we thought and accelerated changes to the way we work and live more in one year than had been the case in the previous five years. The North West has the potential to seize opportunities created from agendas such as increased home-working and online shopping to provide the perfect environment for present and future generations to want to live, work and play in.
Andrew Rainsford
VSNW with acknowledgement to Rob Elvin, Squire Patton Boggs, Manchester.
