Collaboration crucial for Northern prosperity, according to new report
Businesses, local government and communities across the North of England need to work together to increase awareness of the region on a global scale if the North is to continue to prosper, according to a new report by EY.
Investing in the North is a new report out today on the level of inward investment into the Northern Powerhouse region – covering Yorkshire and the Humber, the North East and North West of England. The region achieved a record level of foreign direct investment (FDI) last year, securing 225 projects – an 89% increase on 2014, and 127% increase over the past two years – creating over 10,500 new jobs.
The report reveals that transport, skills and business networks are the most important factors for international investors when considering where to invest in the UK. Devolution of power to a more local level is also well-received, with 42% investors saying it increases the attractiveness of the region, compared to only 7% who felt it could have a negative effect. However, only 38% of investors surveyed globally, and just half of existing UK investors, said they were aware of the devolution agenda.
The report includes five actions points for continued leadership and growth in foreign direct investment in the region: increase awareness of the Northern Powerhouse; sell its strengths; improve transport links; encourage expansions of existing projects as well as new investments; and to think globally.
Simon Allport, EY Senior Partner in the North West commented: “The US was the leading individual source of FDI in the region in 2015, but the majority of FDI projects in the North of England actually came from Europe. With Brexit on the horizon, these relationships will need to be bolstered.
Stuart Watson, EY Senior Partner in Yorkshire and the North East added: “Outside of Europe, new investment in 2015 was secured from India and Japan but less so from China or other locations. We can do this better if we work together, showcasing the assets and skills available not just in one region but across the North.”
“In May next year, elections will take place across the country for nine new mayors, five of them in the North of England, from Liverpool across to the Tees Valley. It is imperative that these metro mayors act as global ambassadors for each of their regions on the global stage. The new mayors must also work closely with each other to encourage investment into the North as a whole.”
The report provides further detail on the level and source of inward investment in the North of England by region and by core cities. It can be downloaded from the website at www.ey.com/ukas.
