Spotlight
THE NORTHERN POWERHOUSE: HERE TO STAY
Andy Burnham MP / John Cridland / Andrew Percy MP
01 cover.indd 1
23/09/2016 16:21:02
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CONTENTS
Commitment in
the face of change
E
COVER ILLUSTRATION BY SAM FALCONER
xpressing admiration for George Osborne is, for many people,
the political equivalent of eating a McDonald’s in a service
station car park, or listening to the James Blunt CD that’s kept
hidden in the deeper recesses of the glovebox – it can make
sense at the time, but it is very much a private act. And yet, this
autumn, Osborne has shown both a stronger sense of engagement and a
more steadfast adherence to principle than his friend and former leader.
While David Cameron’s pledge “to continue serving as an MP” until
“a bit later” turned out to mean “for about two months”, Osborne has
shown that he is willing to fight for the survival of his flagship policy,
the Northern Powerhouse. In doing so, he shows himself also to be a
long-term strategist. After all, though Theresa May and her government
saw an immediate need to appease the British electorate’s dissatisfaction
with their predecessors following the Brexit vote (and Osborne’s sacking
was the first and most demonstrative act in this campaign), no politician
in his or her right mind would dismantle a policy seen as vital to the
economic integrity of half the country.
That is why Osborne was able to accuse May openly of having
a “wobble” over the north, and why she was forced to affirm in the
Manchester Evening News her “absolute commitment” to devolved
powers and investment in a more balanced economy. It is also why, in
this special report, you will find senior politicians, from both main
parties, expressing their support for the policies that Osborne initiated.
Some have even gone so far as to suggest that Osborne could run in the
upcoming election for Manchester’s new and more powerful mayor,
and win. Recent evidence suggests, however, that the former chancellor
is able to think further ahead than that.
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First published as a supplement to the
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4 / Andy Burnham MP
The shadow home secretary
and Labour candidate for
the first mayor of Greater
Manchester challenges
Theresa May to commit
to investment in the north
6 / Andrew Percy MP
The new Northern Powerhouse
minister outlines his plans for
revitalising the region
10 / John Cridland
The chairman of Transport
for the North on his ambitious
plan to dig a tunnel between
Manchester and Sheffield
22 / Dave Innes
Don’t blindly applaud economic
growth, says research by the
Joseph Rowntree Foundation:
unmanaged, it can in fact
deepen social divisions
This supplement and other policy reports
can be downloaded from the NS website at:
newstatesman.com/page/supplements
The Northern Powerhouse | Spotlight | 3
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ANDY BURNHAM
THE NEED FOR COMMITMENT
Furious George: will the
former chancellor’s plans for
the Northern Powerhouse be
quietly shelved by the new
Prime Minister?
Brexit’s lesson
for Westminster:
ignore the north
at your peril
G
The Manchester
mayoral candidate
Andy Burnham
calls on the
government not
to shelve its
commitment
to the Northern
Powerhouse
eorge Osborne’s fall from grace
reached a new low last Friday.
The former chancellor was
forced to travel to Manchester to lobby
a prime minister with whom, just a
couple of months ago, he sat around the
cabinet table.
His complaint was that Theresa May
had failed to put an end to a summer
of speculation about the future of his
Northern Powerhouse initiative. In
Osborne’s words, she had a “wobble”
over the plans.
Osborne’s intervention in the debate
was not unhelpful and he knows how
wrong it would be for the Tory party to
abandon their promises. Before the last
election, you couldn’t escape Tory MPs
touring the north and promising the
earth. It looks like the Northern
Powerhouse could go the same way as
the “big society” – a clever vote-seeking
soundbite and not much else.
As chancellor, Osborne may have
inflicted the biggest revenue cuts on the
north but at least he recognised the
unbalanced nature of our country and
devolved significant powers away from
Westminster. He just wasn’t around long
enough to back up all the fine talk and
the devolved powers with real money.
In June’s EU referendum, we saw a
stronger Leave vote in the north
compared to the rest of the country. The
result, particularly in former industrial
areas, reflects not only concern about
immigration but a much deeper sense of
alienation from a Westminster politics
that has failed to provide answers for
their communities over many decades.
When people voted Leave, they told
us loud and clear that they want to see
change in the way our politics works.
Abandoning the Northern Powerhouse
and promised investment would be
entirely the wrong response to Brexit.
Entering Downing Street a few weeks
after the vote, May pledged to close these
divides in our society and fight the
“burning injustices” that exist between
different parts of the country and social
classes. I welcomed the words but, if they
are to have any real meaning, she must
back them up with real money.
The London perspective on life
dominates the political debate and does
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Labour must
not fail to take
this moment
seriously
not do justice to the challenges that
people here face. In post-Brexit Britain,
the Northern Powerhouse should
become much more, not less, important.
May should fully embrace the project and
make it a crucial part of the government’s
response to the referendum result. If
the government fails to show these areas
that it has listened and understood the
message they sent, then the political
crisis in our country will only deepen.
With devolution to elected mayors,
we have a chance to revitalise Labour
in the north, too. I am determined that,
as a party, we do not make the mistake
of Scotland. If Labour fails to take this
moment seriously then we will leave an
opportunity for others.
For decades, government policies have
been designed for the south and not the
north – allowing the gap between the
two to grow bigger. If I am elected the
first mayor of Greater Manchester, I will
use devolution to place new emphasis on
technical education and council housing.
There has been a long-standing
snobbery in England towards technical
education, and our education system
invites schools to devote more attention
to university-bound kids than to those
who want something else. If we want a
more equal society, it starts with giving
every young person hope that there is
a decent opportunity waiting for them
at the end of school. I will ask the
birthplace of the Industrial Revolution
to lead a revolution in technical
education and set an ambition of a
quality apprenticeship for every young
person who gets the grades.
Westminster has for years tried to
foist a housing policy designed for the
affluent south on the rest of the country,
promoting owner-occupation to the
exclusion of investing in other forms
housing. This has led to the sell-off
of our council housing, an unregulated
private rented sector and a failure to
build the new homes that we need.
But under the devolution deal, a
£300m housing fund has been created
for Greater Manchester that can provide
loans and guarantees to councils and
housing associations to expand the
public housing stock and buy out the
absent and neglectful private landlords.
A new rent-to-own scheme will build
the homes we need to get our young
people on the housing ladder.
There is an exciting opportunity for
mayors to bring health policy and
housing policy together, too, and place a
new emphasis on building homes with
care and support in mind. In the century
of the ageing society, we need to follow
the lead of Sweden and start building
“dementia-friendly” homes. Devolution
of the NHS budget means we can build
the country’s first fully integrated
National Health and Care Service,
working to bring social care into the
public sector and the NHS.
Far from powering on, the economy
of the north of England risks grinding to
a halt if promised transport links are not
delivered. Failure to give the north a fair
share of transport funding has saddled
us with a clapped-out, overstretched and
overpriced rail service.
Yet, during August, government
sources briefed newspapers that Theresa
May is planning to impose greater cost
controls on the HS2 rail link and could
curtail HS3. When overcrowded trains
still take hours to trundle across the
Pennines, I simply cannot see how
anyone could possibly conclude that
Crossrail 2 is the highest strategic
transport priority for our country.
In her Autumn Statement, the Prime
Minister must make the first down
payment on the building of the Northern
Powerhouse with a commitment to the
most ambitious version of an HS3
scheme, linking Liverpool with
Manchester and onwards to Leeds and
the other cities of the north. She must
understand there is no social mobility
without modern public transport.
People remember a previous Tory
prime minister standing on the steps
of Downing Street quoting St Francis of
Assisi – and seeing a wide gap open up
between her words and her deeds. To
prevent history repeating itself, I urge
Theresa May to act quickly to make clear
her personal commitment to investing in
the north and rebalancing our country.
The Northern Powerhouse | Spotlight | 5
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ANDREW PERCY
A NEW PLAN FOR THE NORTH
Devolution deals will transfer
millions in investment, says
Andrew Percy, minister for the
Northern Powerhouse
Power will shift
from Whitehall
to the town halls
of the north
For too long, the United Kingdom has
been much too dependent on growth
in a single city. As the Prime Minister
set out recently, writing in the Yorkshire
Post, the Northern Powerhouse remains
a crucial part of our ambition to create
a country with a balanced economy
that works for everyone – by helping
the great cities and towns of the north
to pool their strengths and take on
the world.
The northern economy already hosts
more than half a million businesses, and
many of the world’s finest universities
and research institutions. Fifteen million
people call the north home – that’s
more than Hong Kong, London or
New York City.
In the past year alone, the number of
people in work in the north increased by
one person every five minutes –
to 121,000 in total – and the number of
businesses increased by 10 per cent.
This Conservative government realises
the huge untapped potential of our great
northern towns and cities to become a
powerhouse for our economy. We will
achieve this with a revolutionary new
style of governance through devolution,
increased investment and modern
transport links.
to town halls in the north, alongside the
power to make decisions that local
people really care about. Through elected
mayors, with elections next year, there
will always be the strong, accountable
governance arrangements in place to
ensure local voices are heard.
Devolution After decades of central
control, the system for local government
in England is experiencing its biggest
change for generations. For too long,
successive governments were content to
hoard power in Whitehall and hope
growth would trickle down from
London. Those days are over.
We are determined to build a country
that works for everyone, not just the
privileged few; to create a country in
which – wherever you are from, whatever
your background – you can work hard
and get on in life.
The north’s devolution deals will
see billions transferred from Whitehall
Investment My appointment as
Northern Powerhouse minister
reaffirms the government’s 100 per cent
commitment to seeing people and
businesses in the north thrive.
The Northern Powerhouse is now
a name recognised and admired around
the world and is being backed up with
massive investment in science and
technology, transport and connectivity,
culture and tourism, and ever greater
powers for local communities.
Now we are looking to build on this
momentum through an industrial
strategy that focuses on improving
productivity, rewarding hard-working
6 | Spotlight | The Northern Powerhouse
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23/09/2016 16:25:25
people with higher wages, and creating
more opportunities for young people.
We want to build on the progress made
in the north of England but also to
support economic growth across the
country and tap the potential of all our
cities. This new emphasis will be
constructed on solid economic and
cultural foundations.
Throughout history, the north’s
wealth and prosperity have been linked
to its industrial power and commercial
enterprise – today’s growth is no
different. That’s why we have developed
17 enterprise zones across the Northern
Powerhouse, centres of excellence
offering world-class infrastructure
alongside financial incentives to help
businesses grow.
Investing in talented individuals in
high-value technical industries – many of
them graduates of the north’s world-class
universities – is helping to build strong
support networks for businesses across
the region. And companies such as
Boeing, Siemens and Rolls-Royce are
already moving in.
Local communities have already been
backed with significant cash for
investment. In the last round of Growth
Deals, £2.8bn was given to decisionmakers across the north to support local
businesses and infrastructure, with
projects such as the £5m Olympic Legacy
Park in Sheffield, which will create up to
1,000 high-value jobs and is attracting
investment from companies like Toshiba
and Westfield Health. And with a new
round of Growth Deals this year, worth
up to £1.8bn, it’s clear the “Whitehall
knows best” mentality is gone.
Boeing,
Siemens and
Rolls-Royce
are moving in
Transport Good transport infrastructure
is vital to making this a reality.
Transport for the north has been
established and provided with £200m to
set a clear direction for investment and
ensure that this money is targeted where
it is needed most to transform transport
for the whole area. We’ve committed
to spending a record £13bn on transport
in the north by 2020. We are putting
the Northern Powerhouse in the fast
lane for infrastructure.
We’re building new bridges such as the
£486m Mersey Gateway bridge and the
Wear crossing. Key road improvements
include multimillion-pound upgrades to
the A1 and M62. Meanwhile northern
railways are being prioritised through the
electrification of the TransPennine
railway and HS2.
Northern Powerhouse partners
Step by step, we are making the Northern
Powerhouse a reality. But we know there
is much more to do and that is why we
ask that you judge a project of this scale
in years, not months.
The next stage of this journey is to
make sure local people and businesses are
the real drivers of its success. That is why
we’ve launched a “partner scheme” for
businesses in the north to help those
responsible for its economic renaissance
take ownership of the powerful brand.
Already this includes businesses such as
Manchester Airport Group, the
Peel Group and Atkins, and we want
many more to sign up.
I would urge businesses to get involved
because, following the Brexit vote, the
north must seize the historic and positive
opportunities on offer.
Over the past year, trade missions, our
Northern Powerhouse “Pitchbook” and
award-winning promotional videos have
already highlighted to foreign investors
more than £24bn of investment
opportunities. And in that time, we’ve
seen money coming in to numerous
investment projects, including in
Manchester, Stockport and Newcastle.
Time and again, businesses abroad
have said the north has some of the
best products and people in the world –
and, as a proud Yorkshireman, of course I
would agree. In fact, EY’s research
revealed that the number of foreign direct
investment projects in the north has
increased 127 per cent in the past
two years alone.
Brexit will allow Britain to forge a
new place in the world, with new
freedoms, new opportunities and new
horizons for the north.
As we work hard to get the best deal
for the UK, so must the north.
The Northern Powerhouse | Spotlight | 7
06-07 Andrew Percy.indd 7
23/09/2016 16:25:26
ADVERTORIAL
Theresa May
must convince
us this is more
than a PR job
Cynicism in the north-east about the
Northern Powerhouse project can perhaps
be attributed to the Conservatives’ legacy
in the region, says Vicki Hayward
T
IN ASSOCIATION WITH
he EU referendum sparked a
monumental shift in the British
political landscape this year.
Theresa May’s swift cabinet reshuffle
after her appointment as prime minister
unseated George Osborne, the
champion of the Northern Powerhouse,
and handed his pet project to a junior
minister – suggesting a demotion in
the order of priorities.
Recently, however, the Northern
Powerhouse has obtained May’s
backing, and the project has been
offered £13bn in funding for transport
throughout the north. The government
has also given Yorkshire a £24m cycling
fund, with a promise to devolve further
powers to the region in the next year.
In the rest of the north, however,
objectives on devolution remain
unclear. In the north-east, scepticism is
evident. Our inclusion in Northern
Powerhouse rhetoric has been
Will the north-east receive the same
attention as the M62 corridor in
Northern Powerhouse planning?
historically minimal, with greater focus
on Manchester and the M62 corridor.
Indeed, our devolution deal relied
heavily on European Union funding,
and the government has admitted
that the £800m earmarked for the
north-east is unlikely to happen in an
environment outside of the EU.
Furthermore, the North East
Combined Authority has failed to
provide certainty on devolution,
following its rejection of the proffered
deal. This demonstrable absence of
detailed specifics for our region points
to our continued alienation. For many
in the north-east, the old adage “once
bitten, twice shy” echoes ominously.
Cynicism is perhaps appropriate, and
could be attributed to the Conservative
Party’s legacy in the region; Margaret
Thatcher’s economic restructuring
certainly had a significant impact on our
once-powerful industry. However, in
8 | Spotlight | The Northern Powerhouse
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SHUTTERSTOCK
2016, it would be hard to envision
history repeating itself. The north-east
has gone digital and is, arguably, the
UK’s most burgeoning tech hub – worth
£5.7bn to the region and growing. Even
Google has acknowledged the northeast’s increasing influence, by hosting
its Digital Garage in Newcastle this year.
At OnTrac – a subsidiary of the
OnTechnology group – we have
first-hand experience of what it’s like
to be a successful digital company in the
north-east. We were named fastestgrowing northern tech company at this
year’s Northern Tech Awards, and have
continued to strengthen links with
companies and clients alike by creating
a wide range of bespoke software.
This year has also seen OnTrac take
the first intrepid steps into virtual reality,
an element of technology that perfectly
complements our existing portfolio of
products and services. We have the
ability to create software that will enable
clients to visualise geospatial data in a
BIM-compliant, virtual environment
within the building management/
services industry. Using our existing
links within the rail industry, we have
created a virtual network for the
purpose of scenario simulation, driver
route knowledge and capacity planning
software. This promises to open up new
areas for growth and innovation.
These are exciting times, but our role
within the Northern Powerhouse
remains unclear. We feel that the prime
minister’s renewed focus confirms only
what has long been said: that the
Northern Powerhouse is nothing more
than a concept, critical to the success of
a clever PR campaign designed to soften
northern attitudes towards the
Conservative Party. In short, the
government has a long way to go, if it is
to convince north-east enterprise that it
is committed to the inclusion of our
region in a true Northern Powerhouse.
It is worth noting, however, that we
do share a common interest with the
architects of the Northern Powerhouse.
OnTrac has an extensive list of clientele
within the rail industry, and has been
steadfast in its commitment to
improving transport links – not just in
the north – but in the UK as a whole.
Our most recent product, eTrac, has
been rolled out across the wider UK rail
network, and aims to dramatically lower
the risks for workers in the industry. It
has already been used to create 26,000
kilometres of digital diagrams.
OnTracw has delivered value to its
clients without a proper Northern
Powerhouse foundation in place. We
expect this success to continue, as
Theresa May’s vision expands in the
future. Our parent company, Tracsis,
shares similar expectations. Its
significant operations in the north were
established long before the concept of
the Northern Powerhouse; it is these
connections that have helped drive
the group’s continued success. If this
renewed vision for the Northern
Powerhouse doesn’t take off,
Max Cawthra, chief financial officer at
Tracsis, believes that it will be “simply
business as usual”.
The north is a hub of productivity,
with a buzz of ingenuity throughout
our business communities. Ultimately,
we are a region of endurance: the
north has always prevailed in times of
uncertainty, and this must continue.
In short, northern enterprise needs to
be its own driving force for change.
OnTrac’s managing director, Martyn
Cuthbert, says: “Ensuring the UK has a
21st-century digital infrastructure, with
the ability to collect, analyse and share
mass data, is critical to the long-term
prosperity and competitiveness of our
country – particularly following
Britain’s exit from the EU.”
He continues: “The internet has
become a global platform for
communication, commerce and social
interaction, and a more joined-up
approach to technology will help the
government become more effective,
transparent and accessible to the British
public. The result will be major
improvement in public services, such as
healthcare, education and energy. This
will ultimately help improve all our
lives, as well as drive the continued
success of the north-east and beyond.”
The North East Combined Authority
must clarify our future position in the
Northern Powerhouse. Its rejection of a
devolution deal implies it is paralysed
by politics that are entrenched in archaic
traditions. To add more complications at
this stage only leaves the north-east
further excluded from involvement in
the prime minister’s vision, and creates
divisions in the region.
The political establishment needs to
change fundamentally to bring about
devolution. David Cameron’s
commitment to austerity did not prove
the key to an economically successful
country. Theresa May needs to learn
from the mistakes of her predecessors.
It is important to acknowledge that her
plan – if one with actionable intent
beyond Yorkshire – has real potential.
However, it requires the government to
embrace the digital revolution, and
understand its importance in our future.
The Northern Powerhouse | Spotlight | 9
10-11 Ontrack adv dps.indd 9
23/09/2016 16:30:31
JOHN CRIDLAND
THE CASE FOR A TRANS-PENNINE TUNNEL
The most ambitious project
yet proposed for the Northern
Powerhouse is the trans-Pennine
road tunnel. John Cridland, chair
of Transport for the North, tells
Will Dunn why he supports the idea
A tunnel through
the Peak District:
can you dig it?
T
“It’s a Crossrail
of the north”
he economy of the north has been
transformed by its transport
before. The man-made landscape,
from its Victorian industrial centres to
the bridges and canals of its countryside,
appeared with the Industrial Revolution.
John Cridland sees a parallel with the
modern north.
“What is remarkable about that
period,” Cridland says, “in which the
north played a leading role, was the
way in which entrepreneurs seized
the opportunities of canal growth,
and then rail investment, to do things
that only a generation earlier would not
have been possible.”
For Cridland, connectivity is what
makes economic areas succeed.
“I like to use the example of the
Randstad in the Netherlands,” he says,
referring to that country’s “ring city”
region, made up by Amsterdam,
Rotterdam, Utrecht and The Hague.
“In the Randstad you’ve got a similar
population to the cities in the north of
England, but greater economic value, and
connectivity is part of that. If you’ve got
somebody growing up in somewhere
like Salford, the Metro has given them a
chance to travel quickly and effectively
on a regular basis between Salford Quays
and Manchester Piccadilly.
“What TfN [Transport for the North] is
now trying to do is to make it possible for
someone from Salford not only to have a
high-quality job in Salford or Manchester,
but to have a high-quality job in Leeds
or Sheffield or Liverpool. And whether
it’s rail links or road links, it’s regular,
predictable and high-quality travel
options that give people chances.”
While those in Dutch and German
cities can realistically look for work in
a city within the same megalopolis,
Cridland points out that people in
northern England are hampered by the
journey time between cities. “These
are distances which, in other parts of
Europe, would be perfectly commutable.
The distance between Sheffield and
10 | Spotlight | The Northern Powerhouse
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23/09/2016 16:26:22
Manchester is not massive, but the
evidence shows it has the slowest
journey time per mile of any two cities
in the country.”
Part of the problem is the way in which
transport routes in the UK have evolved:
all roads lead to London. Cridland says
there are major new investments across
the north, from Sheffield and Manchester
city centres to the ports of Liverpool,
Teesport and the Humber, which could,
if connected, offer a “multiplier effect”,
allowing businesses to share resources
and expertise. “East-west links could
liberate travel patterns for citizens to
get to higher-quality jobs and for
entrepreneurs to seize economic
opportunities, because they’re filling a
real gap. It’s the east-west links in the
north of England that are poor.”
The solution, he says, is to dig deep.
The proposed trans-Pennine road tunnel
is still only a feasibility study, but it’s
thought that it would reduce the drive
between Sheffield and Manchester by
half an hour, saving more than 11,000
hours of driving per day. It would be
a mega-project on a par with Crossrail,
involving up to 18 miles of subterranean
driving; up to 15 million cubic metres of
rock would need to be excavated, enough
to fill 6,000 Olympic swimming pools.
“As a grand project,” Cridland agrees,
“it is of that scale. It’s a Crossrail of the
north. And if you look at what Crossrail
is doing to transform London, I think
that’s the opportunity.”
He adds: “In talking to elected leaders
and business representatives in the north,
one hears regular and powerful anecdotal
stories about the challenge of journey
times, and the quality of provision. We’ve
got the Pennines between Manchester
and Sheffield, so, whichever route you go,
you are likely to face congestion from
winding routes, and you’re also likely to
face weather challenges. Congestion in
the villages at the end of the M67, heading
for the Woodhead Pass, is an illustration
of the challenge it provides for travellers
t
The M62 currently sends
large volumes of traffic into
the villages and winding
roads of the Pennines
but also the challenge for people trying
to live in those neighbourhoods,
where the transport capacity simply
isn’t good enough.
“So, you’ve got the challenge of
all-weather routes across the Pennines,
whether it’s Sheffield-Manchester on the
A628 or the A6, or whether it’s Leeds to
Manchester on the M62, which is the only
motorway-equivalent route if you’re in
Sheffield and you decide to go north and
across. These are high-altitude roads,
they’re susceptible to winter weather.
Because the trunk routes are not of
motorway standard, particularly on the
Sheffield-Manchester routes, you have
pinch points at both ends. In villages like
Mottram, people come off the motorway
and go down to an ordinary, two-way
trunk road that winds its way up across
the Pennines, so you get a lot of stacking.”
As with Crossrail, the case for a
tunnel is made by what lies between
destinations; not houses, in this case, but
the rugged beauty of the Peak District,
which Cridland calls “a phenomenal
national asset”.
“We are considering a very long and
ambitious tunnel for precisely that
reason – that it would be wholly
inappropriate to consider a surface dual
carriageway across a national park. But
tunnels also have impacts. They still need
venting, for air safety. If you think back to
Victorian rail tunnels, they had those
little castles in fields. As a child, I used to
wonder why somebody had built a castle
there, until I realised that they were air
tunnels for the railway that the Victorians
had built underneath the hill.
“Anything you do has an
environmental impact. It’s up to
stakeholders to judge whether they think
the feasibility study is addressing that
properly, and I’m sure there will be a
variety of opinions.”
Many of the environmental concerns
raised in TfN’s study are associated with
the proposal that the tunnel should carry
a road, rather than a railway. Overall,
TfN foresees a significant increase in
air pollution, noise and the carbon
emissions associated with more traffic.
Furthermore, if people from Sheffield
The Northern Powerhouse | Spotlight | 11
10-12 John Cridland.indd 11
23/09/2016 16:26:24
t
JOHN CRIDLAND
THE CASE FOR A TRANS-PENNINE TUNNEL
are going to begin driving to work in
Manchester, there will need to be a lot
more parking spaces in Manchester.
Without supporting infrastructure, says
Cridland, a tunnel would merely move
pinch points, rather than relieving them.
“It is a priority to make sure that there
is good connectivity between the existing
transport infrastructure at either end of
a new route, and that new route. That is
in part why, even in the interim report,
options have been narrowed down, and
certain routes – particularly the southern
routes – have been ruled out. The options
are narrowing down on the northern
routes because the environmental impact
would be much less, and because it links
better with existing roads.
“A lot of the stakeholder comment has
been about the consequential impact,
at both ends, of the new route. We
recognise that that’s an absolute priority
to get right, because it would be liberating
people to do travel patterns which they
don’t currently do, and inevitably there
will be a knock-on impact.
“TfN is a partnership of civic and
business leadership on both sides of
the Pennines, and the strategic routes
will need to be followed through by
individual local authorities taking
responsibility for their own local travel
solutions and making sure that there are
local travel solutions at each end of a
potential tunnel, so that it is an integrated
package, not an isolated investment.”
There is no question that the
overarching project behind Cridland’s
plan – to connect the cities of the north
into a single, highly commutable
metropolitan area – will meet with a
great deal of difficulty and opposition,
from the need to battle the south of
England for investment to the need to
preserve the environment that makes the
north an attractive place to live.
But earlier this year, TfN commissioned
research that illustrates the yawning gap
between London and the north, and the
size of the opportunity that could be
grasped: according to the Northern
Powerhouse Independent Economic
Review, Londoners produce on average
£22,000 more gross value added
(GVA, a measure of economic activity)
per person than people in the north.
The challenge for everyone working in
the north is to see if this gap can be
bridged – or perhaps, as John Cridland
suggests, if it can be tunnelled.
12 | Spotlight | The Northern Powerhouse
10-12 John Cridland.indd 12
23/09/2016 16:26:26
ADVERTORIAL
Region’s industrial
heritage lives on
in its digital hub
New technology
draws on the
great tradition of
engineering in the
north-east, says
Joseph Artgole
of the visualisation
specialist ZeroLight
IN ASSOCIATION WITH
W
ith emphasis on economic
development underpinning
the Northern Powerhouse
agenda, the North-East has seen rapid
growth in its digital economy. The
region has a fast-growing reputation
for software and infrastructure
development, in particular the creation
of interactive experiences for both
commercial applications (digitisation)
and entertainment (games/CGI).
Whilst the visual representation
of products is widespread, the method,
results and application have vastly
improved to deliver technologies
that are changing the way customers
perceive products across different
mediums. The North-East is home
to companies that are harnessing and
delivering such technologies on a
global scale.
Commercially, the automotive
industry is the perfect example of how
advances in visualisation technology
are benefiting customers. ZeroLight
is a Newcastle-based software and
innovation company, delivering
visualisation solutions to global
brands including Audi and Pagani.
Between 2014 and 2015, the company’s
employee count grew by 140 per
cent; the following year it rose 90 per
cent. Now at around 100 employees,
with operations in other countries
including the US, Germany and China,
ZeroLight has relocated to high-profile
offices on the Newcastle Quayside to
accommodate its expanding workforce.
Its technically gifted programmers
have a strong understanding of
computer science and maths, along
with the vision to see simple solutions
to complex problems. Artists push the
capabilities of existing infrastructure
by demanding more tools to deliver the
stunning visuals seen in ZeroLight’s
work. In-house innovation and R&D
increases the collective expertise of
staff, maintaining their position as
world-leaders in their field.
The highly specialised development
taking place at ZeroLight is a catalyst
for opportunities in the region.
The company is contributing to
the North-East’s growing pool of
technical expertise through education.
Its graduate and internship scheme
promotes and encourages uptake of
computer science and other Stem
subjects. Sixty per cent of ZeroLight
engineers joined the company through
the graduate scheme, as did 75 per cent
of its technical directors, who now lead
their own automotive client teams.
Engineering in the North-East has
a long history and is well and truly
alive in the region’s modern digital
economy. Principles of invention
established by its civil and mechanical
engineering pioneers provide a strong
foundation for today’s software
engineers. Research by Tech City UK,
published last year, found that 77 per
cent of digital companies in the NorthEast are part of a cluster. More than half
rely on local universities for training
and recruitment, significantly higher
than the national average. Support for
start-ups is led by organisations such
as the venture capital firm Northstar
Ventures, Campus North and
Sunderland Software City.
The work ZeroLight has produced
for international automotive
manufacturers has been recognised by
publications including Top Gear, the
Verge, Fortune, Evo and Automotive
Management. Recent awards include
an International Business Award and
a Techies award for its market-leading
real-time cloud technology; it made the
top ten in this year’s Startups 100 and
was shortlisted in the Financial Times
Boldness in Business awards and the
UK Business Awards.
Northern Powerhouse | Spotlight | 13
13 Zerolight.indd 13
23/09/2016 16:32:08
ADVERTORIAL
Charlie Cornish,
Chief Executive
of Manchester
Airports Group
(MAG), discusses
the future of the
North’s international
connections
IN ASSOCIATION WITH
Manchester Airport supports the jobs of
more than 42,000 people. How will you
ensure that the region continues to
benefit from your success?
As Manchester has grown to become the
UK’s third biggest airport, the number of
people employed on our site has increased
dramatically. Having just celebrated a
record year for both passenger numbers
and financial performance, we are sure
we’ll see more growth as more airlines
view Manchester as the gateway to the
North of England – and, increasingly, the
UK as a whole. This will stimulate more
employment, as will the £1bn investment
programme that will soon be starting at
our terminals, which will create 1,500 jobs
alone between now and the end of 2019.
International connectivity will also
create more jobs in our Airport City
project, which will bring global
businesses to the logistics, manufacturing
and leisure space we are developing on
land next to our terminals. This is already
paying off, with the decision by Amazon
to open a fulfilment centre at Airport
City, creating a further 1,500 roles.
What drives Manchester Airport’s growth?
There are many reasons, but the most
obvious is the further development of
our aviation offering. A growing number
of airlines are looking to start new
services from Manchester Airport, or to
increase frequency on existing ones. In
the past few years we’ve seen direct
long-haul flights launch eastwards to
Hong Kong and Beijing, and to Los
Angeles and Boston in the west. These
are on top of the seven daily flights we
have to the Middle East and our strong
network of short-haul services, which
total more than 210 destinations. This
growth will continue because airlines
recognise the strength of our huge
catchment area, which equates to
roughly the size of the Netherlands in
population.
Transport lies at the foundation of
every successful economy and whilst
connecting the North to the rest of the
world is crucial, it is also imperative that
the region is better connected within
itself. If the wider North had better
access to Manchester Airport, we would
be able to meet a greater share of our
passengers’ connectivity needs more
conveniently, allowing them to fly
SHUTTERSTOCK
Taking the
North to
the rest
of the world
14 | Spotlight | The Northern Powerhouse
14-15 MAG adv dps.indd 14
23/09/2016 16:33:02
For example, the direct services that
will soon be flying from Manchester
Airport to San Francisco from next
summer will deliver a significant boost
to tech businesses across the north, who
will be able to tap into the expertise and
funding of Silicon Valley. This is the
kind of global access the North needs,
and which we provide.
That’s why we were pleased to see
Manchester Airport was included in
Transport for the North’s Northern
Powerhouse Rail proposals. Reducing
journey times between the North’s
major cities and its primary international
gateway will deliver major productivity
benefits for businesses across the patch,
stimulating exports at the same time.
The potential is there to treble the
number of people that have good access
to the airport by public transport. With
nearly 10 million potential passengers,
an extra 20 or 30 long-haul services
would be viable for the airlines.
Why wouldn’t you want to realise
that potential as soon as possible?
directly from the region rather than
travelling to Heathrow or using other
European airport hubs.
We also have room to grow. As the
UK’s third busiest airport we have
24 million passengers passing through
our doors each year, but our two
runways have the ability to handle
around 55 million. That’s why we’re
investing significantly at the moment.
How does this fit in to the Northern
Powerhouse agenda?
The importance of a strong Northern
economy is more widely acknowledged
than ever before and there is no doubt
that the Northern Powerhouse vision
has already shown the world that the
region is both an attractive place to visit
and to do business with. Manchester
Airport is the international gateway for
the whole of the North, and we know
our growth is just as important for
people and businesses in Sheffield,
Liverpool and Leeds.
Could government be doing more to help
airports like Manchester grow?
It’s well established that international
connectivity is key to economic growth,
so it follows that government should do
everything it can to forge improved links
with key global markets.
At Manchester Airport, we have seen
impressive growth in long-haul
connectivity in recent years, but when
you compare our long haul growth to
that of our European peers, their growth
has been much, much faster.
One of the main reasons for this is the
UK’s punitive aviation tax regime, which
we believe is in need of urgent reform.
Air Passenger Duty makes tickets more
expensive for individuals and businesses,
adding as much as £140 to the price of a
long-haul ticket. Many European
governments have scrapped similar
levies due to the negative impact they
were having on both airports and
economic growth in cities and regions
surrounding them.
More importantly, high levels of APD
influence the decisions of airlines when
they’re choosing where to place new
routes, particularly long-haul services.
We believe APD could be reformed to
incentivise the launch of new long-haul
services, which stimulate far greater
economic benefits over time than the tax
take would provide.
From a northern context, there needs
to be an appreciation of how investment
in surface connectivity – road and rail
– can not only drive down commuter
times and save businesses money, it can
improve our ability to attract new air
services and connect us with key global
marketplaces. Making it easier to get to
the north’s primary international
gateway should be front of mind when it
comes to making any decisions around
investing in transport infrastructure.
The argument over expanding London’s
airport capacity has been going on since
1968. What’s your answer?
We have said all along that it is beyond
doubt that there needs to be more capacity
in the South East. But as a competitive
airport operator in a competitive
industry, we are more focused on what
we need to do to make the most of our
airports than we are in taking sides.
With an announcement on a new
runway at either Heathrow or Gatwick
imminent, the government must signal
its commitment to developing a
long-term aviation policy that will
enable proposals for further new capacity
at other airports, such as London
Stansted, to be brought forward at the
right time. At the very least, the
government should leave open the
possibility of other UK airports,
including Stansted, bringing forward
investment in further new capacity in
the future.
In the intervening period before any
new runway materialises in the
south-east, the government must do
everything it can to make the best
possible use of the spare capacity that
already exists at airports such as Stansted
and Manchester. These airports will have
a significant role to play when it comes
to connecting the UK to world in the
years to come.
The Northern Powerhouse | Spotlight | 15
14-15 MAG adv dps.indd 15
23/09/2016 16:33:02
ADVERTORIAL
Brexit vote shows
why the north
needs this boost
After millions
expressed a sense
of being left behind,
the Northern
Powerhouse has
never been so
important, says
Marc Davies, Head
of Environment
at WYG and Chair
of the ACE Northern
Region Group
IN ASSOCIATION WITH
T
he Northern Powerhouse has
captured people’s imagination.
In two years, it has gathered
momentum, and major infrastructure
projects are coming into focus through
the National Infrastructure Commission
and Transport for the North.
Figures have shown how much the
north has suffered from chronic
underinvestment. Judging from the
national infrastructure pipeline, the
gap in transport funding per capita
remains woeful, with seven times
greater investment in London than in
the north. Gaps in skills, education
attainment, productivity and income
have given the Northern Powerhouse
further raison d’être.
The Brexit vote momentarily put
a question mark on its future but, if
anything, the referendum result should
validate the need for a Northern
Powerhouse. Analysts pointed out that
the decision to leave the European
Union reflected disenfranchised
pockets of the population feeling left
behind by the poor state of education,
housing and employment in their
communities. In other words, this
disenchantment strikingly exposes the
gaps in socio-economic factors that the
Northern Powerhouse seeks to address.
WYG has a strong presence in the
north. We recognise the potential that
exists and understand how it could
benefit the whole country when
unlocked. Serious investment is
needed as well as a clear plan weaving
together hard infrastructure and
socio-economic dimensions, and I urge
the Chancellor to commit funds at the
upcoming autumn statement. Only by
doing so can rebalancing occur in any
material way. Our business is to offer
multidisciplinary advice, using our
expertise in areas such as transport,
engineering, planning, project
management and the environment, to
deliver a strategic vision for our clients’
assets. Importantly, we make projects
come to life and ensure their delivery.
This is a process that is remarkably in
line with what it would take to make
the Northern Powerhouse a reality.
We are already working on projects
that embody its spirit. The Kirkstall
Forge regeneration scheme in Leeds is a
good example. A new railway station
will connect the area to the city centre
in five minutes. It will become a
thriving quarter with 1,000 new
homes, creating hundreds of new jobs
and attracting £400m of private sector
investment. Our recent appointment
on Transport for Greater Manchester’s
framework is another significant step.
The Northern Powerhouse is also
about creating synergies between cities,
businesses and people. Business has
great potential to contribute to growth
in the north, and there is a real desire
across all sectors to take the lead. Earlier
in the year, this led to the creation of
Business North to give local business a
united, coherent voice. We are proud to
be a founding member of this first truly
pan-northern organisation. I also Chair
the Association for Consultancy &
Engineering Northern Region Group,
adding important lobbying power to
the decision-making process.
Research and innovation also have a
vital role to play. To this end, we recently
supported IPPR North in launching a
Blueprint for a Great North Plan.
Our connections and our ever
increasing role in the north mean
that we are well positioned to advise
those currently considering northern
investments. The need for a Northern
Powerhouse has never been so
relevant, which is why WYG
intends to be instrumental in its
realisation, with expertise,
commitment and passion.
16 | Spotlight | Northern Powerhouse
16 WYG.indd 16
23/09/2016 16:33:22
ADVERTORIAL
Partnerships can
turn molecules
into medicines
Collaboration in
health research is
helping to create a
scientific Northern
Powerhouse, says
Jonathan Lewis
of Aptus Clinical
IN ASSOCIATION WITH
T
he UK pharmaceutical sector
continues to flourish, creating
wealth and employment
opportunities as well as medicines
that have the potential to transform
patient’s lives. However, since most
large pharmaceutical companies and
almost two-thirds of R&D in the UK
are concentrated in the south-east of
England, it is easy to assume that the
south has a monopoly on scientific
talent, investment and infrastructure.
In reality, it is the north, and in
particular the north-west, that
increasingly threatens southern
dominance, with the north of England
now delivering more clinical trials
than Oxford, Cambridge and London
combined. Much of this is due to
successful collaborations and strategic
partnerships in the region between
R&D centres, the NHS and academia,
which have allowed expertise to
be shared, economies of scale to be
realised and an extensive supporting
infrastructure to be developed.
The Northern Health Science
Alliance (NHSA) is one example of
scientific collaboration. Founded
in 2013, the NHSA unites northern
universities, research-intensive NHS
trusts and four academic health science
networks to create a single point of
contact for organisations that can then
access resources across eight major
cities. This includes globally recognised
oncology expertise in Newcastle,
Leeds, Liverpool and Sheffield, and
at the Manchester Cancer Research
Centre and the Christie hospital.
Perhaps then it is not surprising
that the north now hosts 30 per cent
of all UK clinical trials, with global
pharmaceutical companies attracted to
the region by the ready access to a large
patient population. The north is home
to three out of the top five recruiting
NHS trusts and has the largest share
of patient recruitment in the UK,
accounting for 37 per cent of all clinical
trial participants.
The strategic decision by
AstraZeneca to relocate to Cambridge,
from its former state-of-the-art
facility at Alderley Park in Cheshire,
could have been viewed as a setback
for innovative research in the northwest. However, after being bought by
Manchester Science Partnerships in
2014, Alderley Park is re-establishing
itself as an internationally recognised
centre of scientific excellence. Its onsite
bio-science incubator, the BioHub, has
enabled new pharmaceutical, biotech
and life science companies to take
advantage of its facilities, scientific
heritage and industry expertise.
Many of these companies have
benefited from the large pool of
former AstraZeneca employees who
have remained in the region. Among
them is Aptus Clinical, co-founded in
2014 by myself and two other former
AstraZeneca colleagues, which is
rapidly developing as a leading UK
specialist oncology clinical research
organisation. Our network of worldclass scientists enables us to support
life science companies by providing
flexible and cost-efficient access to the
core technical disciplines essential for
successful clinical development.
The emergence of companies such
as Aptus Clinical at Alderley Park
will contribute to the development of
the scientific Northern Powerhouse.
Not only will they be a magnet for
employment and investment in the
region, but ultimately they will help
transform cancer treatment and
outcomes for patients globally.
For more information on Aptus Clinical
and its clinical development consulting
and full-service clinical trial delivery
services, visit aptusclinical.com
Northern Powerhouse | Spotlight | 17
17 Aptus clinical.indd 17
23/09/2016 16:33:49
SHEFFIELD COUNCIL
HOW SHEFFIELD SECURED £1BN INVESTMENT
Sheffield City Council leader
Julie Dore and her team have
secured investment from a Chinese
construction group that could total
£1bn over the coming decades
China in
your Hallam
O
ver the past year there has been
considerable focus on Britain’s
relationship with China and the
opportunities it can bring to secure
much-needed foreign direct investment
in our economy. In Sheffield, this is
something we have been working
on for a number of years. We have a
well-established relationship with our
sister city Chengdu, and the University
of Sheffield is home to thousands of
Chinese students. Chinese investors
are funding the £65m New Era Square
development, close to the city centre.
This summer much of this
collaboration culminated in a landmark
partnership with Sichuan Guodong
Construction Group, a Chinese
conglomerate with numerous interests,
which is listed on the Shanghai stock
market. It has been seeking opportunities
to invest and expand its business interests
outside of China for a number of years.
Personal connections with Sheffield, the
opportunities Sheffield presents, and the
strategic relationships between our city
and Chengdu – where Sichuan Guodong
is based – have helped to secure the deal.
Under the partnership, Sichuan
Guodong will commit to an initial £220m
investment in Sheffield, which will
fund a number of projects as part of the
development and regeneration of the city
centre over the next few years.
This is one of the biggest Chinese
investment deals in a UK city outside of
London, and it is the first deal of its kind
to be made anywhere in the country.
What we have here is an investor putting
its money into Sheffield and making
a 60-year commitment to the city, for
the benefit of future generations. The
partnership confirms Sichuan Guodong’s
long-term commitment to working with
Sheffield. As a result, a whole range of
projects become viable, because there
isn’t the same pressure to make large
returns in a shorter time frame.
As a city, our role in the partnership
is about giving Sichuan Guodong a great
offer to invest in. We are working with
18 | Spotlight | The Northern Powerhouse
18-19 Julie Dore.indd 18
23/09/2016 16:27:18
It’s the first
deal of its kind
anywhere in
the country
them on how the initial £220m will be
spent. The focus will be around citycentre residential, office, retail and leisure
projects, all of which are essential in
creating a dynamic city centre.
This is an exciting opportunity to
deliver on the ambitions and aspirations
we have set out for our city centre.
Usually the barrier we face is securing the
investment to achieve our goals.
So, how did we get here? This
partnership has been more than 18
months in the making, and is the result
of huge personal commitment on
behalf of the council’s leadership and
the chairman of Sichuan Guodong,
Mr Wang. The initial contact was made
thanks to Sheffield’s links with Chengdu.
When the potential opportunities
became apparent, we invested time in
building trust and working intensively
with Sichuan Guodong to explore the
mutually beneficial opportunities.
In October 2015 a memorandum
of understanding was signed between
Sheffield City Council, Sichuan
Guodong and the government body UK
Trade & Investment. This committed
the parties to exploring the possibility
of establishing a long-term, strategic
relationship to fund the economic
regeneration of Sheffield. Since then
the council has worked intensively,
culminating in the signing of the
partnership agreement in July.
This partnership has the potential to
be groundbreaking for Sheffield. Like
many of Britain’s cities outside London,
it has a number of world-class assets –
including our innovation district, the
Advanced Manufacturing Research
Centre, and the Olympic Legacy Park –
as well as being at the forefront of new
industries such as digital and health-care
technology. The challenge we face is
gaining the commitment of investors to
deliver partnerships on a scale that will
be transformational.
The commitment that Sichuan
Guodong has made to Sheffield is a
huge vote of confidence in our city and
sends out the message that we are able
to compete with anyone to attract an
investment of this nature. If we are to
take this to the next level to transform
our economy, it is essential that we are
actively supported by the government.
The appointment of Greg Clark as
Secretary of State with responsibility
for industrial strategy is an encouraging
step in the right direction, especially
considering his track record of
commitment to new industries, to cities
and the north of England. However,
the government’s commitment cannot
be purely rhetorical; it must go beyond
talking about its ambitions for the
north of England. On a financial level,
cities need to be given the support to
get partnerships up and running, get
projects off the ground and inspire
confidence in the north.
We require funding on a level given
to regional development agencies
before national investment for regional
economic development was decimated in
the last parliament. While some funding
was secured in the devolution deals that
were struck when George Osborne was
chancellor, this is still only a fraction of
the money that was previously available.
There was recognition from Osborne at
the time that these devolution deals were
not an end in themselves, but a starting
point for the government’s commitment
to rebalancing the economy. What we
need to see now is the financial resources
to build on deals such as the one secured
with Sichuan Guodong, so that foreign
direct investment can create the most
effective public-private partnerships
to support the economies of our great
cities outside London.
We have demonstrated what can be
achieved when a city like Sheffield can
connect with an investor that sees the
potential of our region and makes a
commitment to it. The council wants
to send out a message that Sheffield is
open for business. We have also recently
signed co-operation trade agreements
with the city of Daqing, the leading
centre for the oil and gas industry in
China and location of the World Snooker
International Championship, and with
the city of Nanchang. The announcement
of a deal with Sichuan Guodong is just the
start; we now have much to deliver on.
The Northern Powerhouse | Spotlight | 19
18-19 Julie Dore.indd 19
23/09/2016 16:27:18
ADVERTORIAL
IT know-how
will be a driving
force behind
the Northern
Powerhouse
IN ASSOCIATION WITH
W
hatever your opinion on
the aspirations behind the
Northern Powerhouse and the
likelihood of achieving them, the very
fact that the initiative exists presents
us with an incredible opportunity.
It has already served as a talking
point, bringing together business and
council leaders at key events with a
renewed sense of focus and purpose.
Conferences, networking opportunities
and publications such as this would
not exist without it. For myself and the
team at Kaleida, it has allowed us to
connect with other businesses through
our Construction Roundtable events,
sharing knowledge and insight on how
the north can work better together.
As business leaders, the Northern
Powerhouse affects us all. We should
all be at least interested, if not wholly
invested in the discussion. I’ve always
had a keen interest in seeing industries
in the north flourish – in particular, the
digital and construction sectors. I see
the benefits in having open discussions
about the obstacles to growth these
industries face, while sharing the
knowledge and experience needed to
overcome these. Creating opportunities
to support cross-industry growth
does require an investment of time
and possibly resource, but it’s an
investment I’ve found has given back
more than it has demanded.
Collaboration is key to success
The truth is that the aspirations of the
Northern Powerhouse cannot be met
by government funding and input
from Westminster alone. We need the
entrepreneurs, innovators and investors
in the north to drive the concept. If we
are to see the north flourish in a time
of uncertainty, there are key factors we
need to take ownership of. I want to
highlight just a few that are important
values in the Kaleida office – efficiency,
good communication and collaboration.
Each of the different regions in the
Northern Powerhouse has its own
leading voices, agendas and directions.
SHUTTERSTOCK
Just as businesses can
be supported to run
more efficiently, so
cities can be helped to
work better together,
says Cath Kenyon,
Managing Director
at bespoke software
experts, Kaleida
20 | Spotlight | The Northern Powerhouse
20-21 Kaleida adv dps.indd 20
23/09/2016 16:34:49
now, it has been unclear who will be the
driving force behind its proposals. This
became even more uncertain with the
Brexit vote and change in leadership;
however, the recent appointment of the
advisory board appears to be a step in
the right direction.
It seems obvious to say, but if we hope
to achieve anything together, we need
to set clear goals and expectations that
leaders and local authorities can get
behind. A shared vision about what we
hope to achieve – a vision that doesn’t
deny the strengths and identities of
the individual regions – will propel us
forward. Collaboration across Greater
Manchester has proved what can be
achieved if we work together.
At Kaleida, we work in a way that
encourages collaboration. Our job is
to understand the needs of the client
and develop a solution that meets
those needs. We can’t do that without
first establishing the objectives of the
project and setting clear goals. The same
is true for the Northern Powerhouse.
Publications such as the Northern
Powerhouse Outcomes Report have
gone some way to identifying these
objectives, but the exercise needs to be
repeated and reviewed regularly.
Success will require someone to keep
the government accountable. Until
Solutions for sharing information
The first step towards fruitful
collaboration is good communication.
When working with clients, a problem
we are often employed to solve involves
improving communication. Our clients,
who are attempting to collaborate either
from multiple locations or between
contractors in the supply chain,
struggle to share information. This is
often due to different departments or
contractors using software systems that
weren’t designed to talk to each other.
We work to integrate these systems so
that information can be shared in a way
that is hassle-free but still secure.
Another obstacle can be the way
information is gathered and stored.
Work we recently completed for
Renaker Build provides a good
example. Manual data input plus
wasted resource was creating a system
that was slow and inaccurate. Renaker’s
managers were struggling to administer
complex projects across multiple sites,
finding that the system for uploading,
approving and paying contractors
was letting them down. Our bespoke
software automated large portions of
the process, improving accuracy and
reducing the time needed to upload,
query and approve timesheets.
Andy Lofthouse, commercial director
at Renaker Build, says: “We were
impressed with Kaleida’s thorough
approach from the start. They knew
how to ask the right questions, drilling
down to the real constraints we were
facing. Our collaboration continued
as they invested considerable time in
developing an ideal solution for us. We
now have a system that understands
us, saving time and money, while
providing visibility across projects.”
The IT industry is in a position
to develop cloud-based solutions to
facilitate good lines of communication
for Northern Powerhouse projects.
The investment promised by the
government doesn’t come around often,
so we must work in a way that makes
use of each and every pound.
If we want to be more productive, we
need to be more efficient. Investment
in transport is of course a priority, but
perhaps even ahead of that, we should
consider investing in communication
channels and removing distance
between the Northern Powerhouse
cities through digital and cloud-based
solutions, as well as establishing links
with the south-east. Cloud-based
solutions could also help bridge the gap
between public authorities and privatesector partners.
Time for review and feedback
Being efficient doesn’t always mean
being the quickest. At Kaleida, we’ve
found the agile methodology to be
the most efficient way of managing
projects. It allows us and our clients
time for review and feedback, before
taking the next steps. We’re able to
remain responsive and flexible, while
continually assessing the decisions we
make with the end goal in sight. The
result is a solution that fulfils the brief
and also adds value.
In a time of uncertainty, the Northern
Powerhouse needs to run its projects
in a way that adopts the values of the
agile methodology, meaning it can
remain responsive to the changes in
Westminster and the UK economy
post-Brexit. A company that is able
to establish efficient processes can go
from surviving to thriving. When we
have a shared vision, clear goals and
effective communication, we are on the
way to establishing a highly successful
team of people. All individual members
win. Across the Northern Powerhouse
regions, we have the potential we need
to flourish, but the process starts with
us collaborating. I, for one, am excited
about what the north can achieve.
For more information and the full
Renaker Build case study, visit Kaleida.
co.uk. Twitter: @kaleidaltd
The Northern Powerhouse | Spotlight | 21
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23/09/2016 16:34:50
JOSEPH ROWNTREE FOUNDATION
INCLUSIVE GROWTH
Research by the Joseph Rowntree
Foundation shows social divisions
could be deepened if city centres grow
independently of struggling towns.
The foundation’s policy and research
manager, Dave Innes, explains
Economic growth
is worth having only
if it’s inclusive
T
he Northern Powerhouse provides
a powerful vision. Greater
Manchester produces half the
economic output per head of population
of London; the logic of creating an
agglomeration of cities to kick-start the
north’s economy and counterbalance
London is therefore attractive. Leaders in
Manchester, in particular, are taking the
challenge seriously, setting the ambitious
target for Greater Manchester to be a net
contributor to the UK economy by 2020.
Some of the headline statistics seem to
be moving in the right direction. Greater
Manchester’s economy grew 2.3 per cent
a year between 2011 and 2014, faster
than the national average of 2.0 per cent.
The employment rate in the north-west
and north-east has grown faster than
in any part of the UK other than London
since 2008. However, this hasn’t been
matched across the whole of the north;
economic growth was just 0.8 per cent a
year in West Yorkshire.
Economic growth alone won’t
necessarily reduce poverty – we need
growth that creates more and betterquality jobs to do that. Earlier this
year, the Joseph Rowntree Foundation
looked at how areas of the country
have performed on inclusive growth.
We found that, over the past five years,
Manchester, Leeds and Sheffield have
performed better than average on growth
– gross value added (GVA), employment
and skills – but worse than average on
boosting low incomes, addressing labour
market exclusion and the cost of living.
A key issue is which places see the
benefits of a policy focus on the Northern
Powerhouse. The headlines following the
vote to leave the EU talked of a divided
country. But this divide exists within the
north as much as it does between north
and south. Most big cities in the north –
Manchester, Leeds, Liverpool, Newcastle
– voted to remain, but the areas of the
region voting most strongly for Brexit
22 | Spotlight | The Northern Powerhouse
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23/09/2016 16:28:25
JRF’s research identified
Rochdale as the UK’s number
one “struggling town”
levels of qualifications were more likely
to vote Leave in low-skill areas than in
high-skill areas. This suggests a “double
whammy” of a lack of qualifications
and a lack of job opportunities locally
leading to the dissatisfaction to which the
referendum outcome has been attributed.
It underlines the point that there are
deeper inequalities to be addressed than
between north and south.
Our new Prime Minister seems less
keen on the Northern Powerhouse than
her predecessor. She talks instead about
a need to “drive growth up and down
the country – from rural areas to our
great cities” and about “governing for
the whole United Kingdom”. The move
to look beyond boosting growth in city
centres to declining and coastal towns is
welcome, as long as it is matched by the
more ambitious strategy that is required.
So, what should this strategy look like?
On 6 September the Joseph Rowntree
Foundation launched our comprehensive
strategy We Can Solve Poverty in the
UK. This lays out what national and local
governments, business, service providers
and citizens can do together to tackle
poverty. It offers lessons for where the
Northern Powerhouse should go next.
First, sustainably reducing welfare
spending requires focusing support
services on achieving higher employment
and earnings to reduce poverty. The
“work first” approach of Jobcentre Plus
prioritises moving people into work
quickly over improving their long-term
employment prospects, resulting in too
many people in jobs that don’t last or
offer little opportunity to progress.
Designing and delivering services
locally is important; co-locating services
in a single employment and income
hub would allow a more personalised
approach. The devolution of the full
adult skills budget gives local leaders
the opportunity to make connections
between training, employment
t
map closely on to the struggling towns
identified in our earlier research.
Ten of the 12 most struggling towns
are in the north of England. Among
them, in Burnley, Hull, Grimsby and
Blackpool, more than two-thirds of
voters voted to leave. Yet these towns
are excluded from the original vision
of the Northern Powerhouse as an
agglomeration centred on Manchester
and Leeds. If growth stimulated by the
Northern Powerhouse reaches only the
centres of the biggest cities, it will fall
far short of the rebalancing required to
heal the economic divides highlighted by
the Brexit vote. The government needs a
more ambitious vision than the Northern
Powerhouse in its current form.
Our research on the role of poverty in
the decision to leave the EU highlights
the individual factors behind the vote: a
lack of job opportunities, low pay, low
skills and poverty. Where people live has
a compounding effect: people with all
The Northern Powerhouse | Spotlight | 23
22-24 Joseph Rowntree Foundation Dave Innes.indd 23
23/09/2016 16:28:29
Too many
people move
into jobs that
don’t last
t
JOSEPH ROWNTREE FOUNDATION
INCLUSIVE GROWTH
support and job creation, to support
better long-term employment.
A second important lesson is that city
leaders need to make poverty reduction
a central part of their economic strategies.
Greater Manchester in particular now has
an extensive set of spending powers on
transport, housing, skills, employment
support and business support. All of
these policy areas are relevant to tackling
poverty, and it is essential that efforts to
reduce reliance on welfare aren’t limited
to “employment support”. Leadership
at the city-region level provides an
opportunity to join up these policy areas,
and also to develop specific solutions to
local challenges. Recent research shows
how barriers to the labour market differ
across areas. Many parts of Manchester
and Leeds – as with other big cities
around the country – remain deprived
despite a large number of jobs existing
locally. The problem isn’t an inability
to get to jobs, but barriers such as a lack
of skills, health and disability, preventing
people from accessing them.
To enable them to make poverty
reduction a central part of their economic
strategies, local leaders need the right
financial incentives. The benefits to
the government of getting people into
decently paid jobs, in terms of reduced
welfare spending, are clear. But only
7p in every £1 of overall government
savings are retained by local government
for providing services. Cash-strapped
local authorities have little incentive
to orient their focus towards labour
market participation and progression.
The current financial incentives that are
being put in place, notably 100 per cent
business-rate retention, revolve around
boosting growth and tax receipts, which,
as we have seen, may do little to address
poverty. Allowing local government and
cities across the north to keep more of
the savings from boosting employment
would be an important impetus to
encouraging inclusive local growth.
A bolder vision across the north must
be backed by funding and finance. An
immediate question is what happens to
the £8.9bn of European Structural and
Investment Funds committed up to 2020
for supporting growth and job creation in
areas that lag behind. While these funds
have been insufficient to reverse growing
regional inequality, withdrawing them
could speed up the relative decline.
An immediate priority should be to
secure the funding allocated to local
programmes through to 2020. Looking
beyond then, the government should
commit an equivalent level of funding to
create its own rebalancing fund.
This is also an opportunity to think
about how best to stimulate local
growth. The Local Growth Fund, which
finances the current set of growth deals,
was announced on the back of Lord
Heseltine’s report recommending a
single funding pot to support investment
in transport, education, adult skills and
housing. But Heseltine’s proposal was for
a pot six times bigger than the £2bn a year
eventually committed. A government
serious about devolution to the Northern
Powerhouse should expand the Local
Growth Fund to its original proposed
size of £12.5bn, to give cities the clout to
make an impact on local growth.
But the Local Growth Fund needs
to go beyond just stimulating growth.
We propose reorienting it to create
an Inclusive Growth Fund. This would
retain competitive allocation to ensure
that funding isn’t committed to wasteful
spending, but bids would be assessed
according to how they contribute to job
creation, pushing up wages and reducing
poverty. The onus would therefore be on
local leaders to prove that they would use
the money to boost inclusive growth.
The next 12 months are crunch time
for the Northern Powerhouse. It appears
the government’s commitment to the
concept is wavering, and it is unclear
what will replace it. Next year brings
the arrival of metro mayors in Greater
Manchester, Liverpool, Sheffield and
Tees Valley. Mayoral candidates should
be placing genuinely inclusive growth
at the heart of their manifestos. The
challenge for the government is to come
up with a coherent strategy to ensure that
devolution to the Northern Powerhouse
reduces poverty and reliance on welfare
in places missing from the current vision.
24 | Spotlight | The Northern Powerhouse
22-24 Joseph Rowntree Foundation Dave Innes.indd 24
23/09/2016 16:28:29
ADVERTORIAL
A simple fix won’t
solve problems
in deprived areas
Professor
Karel Williams
from Alliance
Manchester
Business School
calls for honesty
in the Northern
Powerhouse debate
IN ASSOCIATION WITH
I
t is easy to turn to simple
political fixes to tackle complex
problems. Take the example of
the privatisation of our nationalised
utilities, such as electricity generation.
Privatisation did not bring in new
investment or lower prices – instead
it led to consumers becoming
increasingly confused by the marketing
of multiple tariffs.
Northern Powerhouse is a simple
fix for the complex problem of how
to grow the whole northern economy
to close the output per capita gap
with London and the south-east. In
agglomeration theory, urban density
brings benefits, and policy-makers aim
to realise these gains by investing in
transport infrastructure and the skills
base to extend the labour market and
connect up all the northern cities.
But if we take the example of
Manchester as a city region, we can see
the limits of this kind of thinking. The
2:1 gap in output, using the measure of
gross value added (GVA) per capita, is
not simply an inter-regional difference
between London and the north but
also a difference between central
Manchester and the north-eastern
boroughs of Greater Manchester, such
as Rochdale, Oldham and Tameside.
The simple fix is to move workers
from deprived boroughs to the
city centres where jobs are being
created. But policy does not recognise
obstacles such as the prohibitive cost
of commuting for low-wage workers.
Oldham is only 30 minutes by tram
from Manchester city centre but the
return fare of £5.40 all but takes up the
first hour’s wages for a school leaver on
a zero-hours contract.
The underlying problem is that
the northern cities have not been
generating enough good jobs. Outside
retail and leisure, they have been adding
junior white-collar, back-office jobs
that do not justify London office rents.
The GVA per capita in Manchester
financial services of £95,000 is half the
figure of London financial services.
Developers have built a new town
of flats, leisure facilities, offices and
retail in the centre of Manchester, with
walk-to-work flats for junior whitecollar workers. In the past 20 years
Manchester and Salford have added at
least 50,000 new office work spaces
and built a similar number of (mainly
one- and two-bedroomed) flats.
What we see in Manchester is not
commuting but the migration of a
young and mobile population from the
outer boroughs, the rest of the UK and
beyond, to live and work in this new
town. Leave the students out of it and
look at the number of 25- to 34-yearolds: between 2001 and 2014 they
increased by 45,000 in Manchester and
Salford and decreased in all eight other
city region boroughs.
Isn’t it time to be honest about the
practicalities that limit the benefits
of infrastructural investment and
upskilling? And then intervene to
dramatically reduce fares and change
the hiring strategies that mean that jobs
such as hotel receptionists seldom go to
young people from Oldham?
For the many who will never
commute or live and work in central
cities, what is the civic offer? Just
what are the political classes, in the
boroughs and the city region, doing to
improve welfare for ordinary voters
in Rochdale, Oldham and Tameside,
whose interest is in social housing and
adult care – not one-bedroom flats and
café bars? If we take these complexities
seriously, the merit of devolution
is that it does provide the political
framework in which these boroughs
could raise awkward questions about
the limits of simple fix.
Northern Powerhouse | Spotlight | 25
25 Alliance Manchester Business School.indd 25
23/09/2016 16:35:31
ADVERTORIAL
Growth in our
northern cities
is a high-speed
train that can’t
be stopped
Since announcing the
Northern Powerhouse
initiative in 2014,
George Osborne has
fallen spectacularly
from grace, writes
Samantha Jones. But
he may yet confound
his critics
IN ASSOCIATION WITH
Manchester’s GVA has grown almost
as quickly as London’s in recent years
I
t wasn’t long ago that London was
spending one pound in every five it
generated propping up government
spending in the rest of the country. The
annual report of regional growth
showed that while London was +20 per
cent in its output compared with
government subsidies, the north-east
was -22.5 per cent. In 2012, when the
report was released, Brexit wasn’t even
a twinkle in the eye, but the disparity
between the capital and the rest of the
UK was becoming a chasm.
George Osborne wasn’t a man
recognised for his buccaneering
radicalism in his time at the Treasury,
but his legacy may well be one that he
has now lost control of. The man once
considered the heir apparent to David
Cameron has had a pretty spectacular
fall from grace, sacked by new Prime
Minister, Theresa May, in the wake of
the Brexit vote and Cameron’s
resignation, he now resides in the
unfamiliar territory of the back benches.
Yet he may be able to claim the last
laugh as his famous northern project
takes on momentum of its own.
When May took control of the keys to
Downing Street she was quick to make
her mark. As Labour began to freefall
through the polls, she saw her
opportunity to claim the centre ground
for her own. In her first speech outside
Downing Street she pledged to stand up
against “the privileged few” and fight
“burning injustice” as well as to “build a
better Britain”. She spoke about
workers’ rights, the balance of power
and the many rather than the few. But
there was problem for those in northern
England who had just voted
overwhelmingly to leave the EU – May
ignored her government’s flagship
policy in the region. The Northern
Powerhouse, many thought, would be
26 | Spotlight | Northern Powerhouse
26-27 Knight Knox adv dps.indd 26
23/09/2016 16:38:21
SHUTTERSTOCK
an ideal strategy to deliver this bold new
Britain but sadly there was radio silence.
In early August the Times reported
that May wanted to “shift the focus to
other rural and industrial areas”, a
prospect that has created anxiety and
confusion in cities in line for large
investment projects. Labour’s Greater
Manchester and Liverpool Metro
mayoral candidates, Andy Burnham
and Steve Rotheram, have reacted
angrily, demanding clarity from the
Prime Minister about her plans. In
response, the new minister for the
Northern Powerhouse, Andrew Percy,
has said he is “100 per cent committed”
to promoting the region’s economy.
Despite the confusion and delays
created by a summer of extraordinary
political events, the truth could be that,
with the wheels set in motion, the
Northern Powerhouse project was
already picking up steam, and the
momentum created is now an
unstoppable force. The eventual aim of
the project was to see the region match
London for GDP output, gross value
added (GVA), job creation, property
growth and economic output.
Looking at the headline figures, a
fairly startling post-Brexit story
emerges – London is stuttering. A
recently published report by Samuel
Tombs of Pantheon Macroeconomics
showed the capital to have some of the
worst economic figures across the UK.
Purchasing managers’ index (PMI) data
revealed that, since the referendum
result, activity in the London economy
has contracted more sharply than in any
of the 11 other UK regions. Recruitment
consultants in the capital told Pantheon
the drop-off in jobs filled was the
steepest in more than seven years.
In the aftermath of the 2008 financial
crisis London was left, for the most part,
largely unscathed thanks to the Bank of
England cutting interest rates. Mortgage
interest payments equalled 8.2 per cent
of all households’ disposable incomes in
London in 2007, compared with 6.6 per
cent across the rest of the country. As
London homeowners had the biggest
proportion of outgoings on mortgage
interest rates, they benefited
disproportionately from a sharp drop in
rates. Today, with the base rate now
near zero, there isn’t room for
homeowners to move. The investment
bank Société Générale has predicted
that property prices in the capital could
fall by as much as 30 per cent and even
40-50 per cent in prime areas.
Of course, dire economic warnings
have been commonplace since the
announcement of the referendum vote
but there has been light amid the gloom
– the Northern Powerhouse. Could it be
that one of the most unpopular
politicians of his generation had seen
what many before him had missed? Had
the architect of the “omnishambles”
Budget identified a reservoir of
untapped potential?
In its State of the City Report,
Manchester City Council predicted that
Manchester’s top four growth sectors
this year would be science, business and
financial, creative and digital, and
construction. The GVA of the city has
recently grown almost as quickly as
London and is predicted by the Greater
Manchester Forecasting Model (GMFM)
to rise by 2.8 per cent every year
between 2014 and 2024 – in line with
the UK figure and above the north-west
annual rise of 2.6 per cent. Leeds,
Liverpool, Newcastle and the Yorkshire
regions are performing similarly
spectacularly, if not better in some areas,
and sectors such as digital technology
and science are being taken forward by
world leaders based in the region.
Key projects taking place across the
region include Manchester’s Airport
City, which had £800m direct
investment from China and more than
£84m from European Structural and
Investment Funds. Property in the
region is booming, with post-Brexit
Manchester offering better value for
buyers off-plan than Melbourne or
Miami, according to new data from
Investorist. Manchester was recognised
by the Economist Intelligence Unit
Global Liveability Survey as the UK’s
most liveable city and one of the top 50
cities globally.
House prices across the region,
construction of new commercial and
residential property, and job creation
and business growth have risen steadily
since Osborne’s announcement of the
Northern Powerhouse initiative in
2014. This is before any of the HS2 or
HS3 high-speed rail projects have even
got under way. With high-speed rail
links in place, it would be reasonable to
expect Northern Powerhouse cities
together to challenge London and other
global financial hubs for dominance.
As London shows the first signs of
hitting the skids after years of
dominance, it may come to be that the
lasting legacy of George Osborne – the
former Chancellor associated with the
pasty tax and the threatened emergency
Brexit budget – is a Northern
Powerhouse that eventually matches or
even overtakes London. That’s quite an
achievement for a backbencher.
Northern Powerhouse | Spotlight | 27
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23/09/2016 16:38:22
ADVERTORIAL
Maybe you can
drive our car
Nissan’s 30-year,
£4bn investment in
the north-east has
revolutionised
manufacturing
across Europe,
writes Paul Watson,
Leader of
Sunderland City
Council
IN ASSOCIATION WITH
T
he earth-movers of Komatsu,
the green innovation of Smith
Electric Vehicles, the cuttingedge chassis design of Gestamp Tallent,
and the plastic components made by
Nifco – all have found a productive
home in the north of England.
But chief among these industry
leaders is Nissan Motor Manufacturing
UK, one of the UK’s largest inward
investment successes and a company
that has become synonymous with
Sunderland. The Japanese automotive
giant employs 6,700 people at its
Sunderland plant and supports almost
21,000 more jobs in its enormous
supply chain in the north-east alone.
Statistics associated with the Nissan
plant are staggering: more than 40,000
UK jobs are supported in dealerships,
supply chain and engineering facilities
(the north-east automotive industry
as a whole is linked to 141,000 UKwide jobs). No other car plant in the
history of the UK automotive industry
has made more than 400,000 cars
in one year, let alone 500,000. The
company has trained more than 1,400
apprentices since operations began
in Sunderland, with more than 100
people currently working their way
through its five-year programme.
Its positive influence also extends to
schools; the Nissan Skills Foundation
has inspired more than 12,000 pupils
to engage in Stem activities.
Think of Nissan and most people
think of Sunderland – the giant plant
has become a symbol of the city’s
success and innovation. The Japanese
group motored into the city in 1986,
at a time when collieries were closing
down and shipyards falling silent. It
not only created a new business sector
in the north-east; it also revolutionised
manufacturing across the whole of
Europe. Its focus on kaizen (continuous
improvement), job rotation and the
“just-in-time” philosophy have all
contributed to the evolution of the UK
manufacturing industry.
This 30-year relationship between
the company and its host city has
been more than mutually beneficial.
Nissan has invested £4bn in the plant
since 1986. Its faith in Sunderland
has been rewarded with repeated
productivity records – the Sunderland
plant is the most productive in Europe.
In early 2016, the Nissan Qashqai
became the most popular family car in
the UK, the first crossover to achieve
this. The introduction of the Infiniti
Q30 premium line in December
marks the first new car brand to be
manufactured in the UK on a mass
scale in 23 years.
Where once our engineering
prowess was applied to ships and
the maritime industry, we are now
renowned for our automotive
innovation, boasting Europe’s most
productive car plant, which is also in
the top ten worldwide. When we do
things in Sunderland, we do them
properly, successfully and with no
small amount of pride and passion.
Nissan’s success has spawned an
industry built on traditional skills, but
grown through our innovation and
hard work – our region now accounts
for 26 per cent of all electric vehicle
production in Europe, and we have a
growing reputation for research and
development investment in new and
emerging technologies.
Nissan has been good for our city
and our region, but we have also been
good for Nissan, thanks to our skilled
and loyal workforce.
There are more than 240 automotive
companies in the north-east,
generating more than £11bn in sales
and exporting over £5.1bn annually,
with a trade surplus of £2.6bn.
28 | Spotlight | The Northern Powerhouse
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ADVERTORIAL
Can devolution
survive in a new
political era?
With uncertainty
surrounding the
May government’s
post-Brexit agenda,
proposals once
heavily supported
by George Osborne
could be under
threat, writes
Peter Ware of
Browne Jacobson
IN ASSOCIATION WITH
Under the former Chancellor George
Osborne and Greg Clark, in his
roles as minister for cities and later
communities secretary, the concept of
the Northern Powerhouse was a key
policy area. It was a top priority for
Osborne, with a focus on the HS2 rail
link, elected mayors and greater control
over spending for devolved regions.
With the arrival of a new, post-Brexit
Cabinet, it is possible that Osborne’s
approach will be altered.
Devolution blueprints
Osborne was keen to give English
cities powers over housing, transport
and policy, and wanted Manchester
to be a leading example, with the
election of a mayor and greater control
over its health budget. Most of the
agreed devolution deals featured a
new, directly elected mayor, and the
government has stated that this will
be required where substantial powers
are to be devolved, as it ensures greater
accountability.
New minister for the Powerhouse
Andrew Percy is now the minister
for the Northern Powerhouse.
Osborne, now on the back benches,
has recently announced the launch of
a think-tank to promote the Northern
Powerhouse. However, concerns have
been raised that the Prime Minister
will not maintain a commitment
to the concept. Andy Burnham and
Steve Rotheram, Labour’s mayoral
candidates for Greater Manchester and
Liverpool, have written to Theresa May
seeking confirmation of her plans for
devolution and high-speed rail links in
northern England.
The question of elected mayors
Uncertainty also remains concerning
the government’s position on elected
mayors for devolved regions. Little has
been said by May, and it could be that
devolution is not at the top of the new
Cabinet’s agenda. Many council leaders
have suggested they are unclear how
to proceed with agreements reached
under the previous government.
Plans for devolution may falter if local
authorities do not maintain pressure on
the government.
Faith in the future
In early September, four of the seven
North East Combined Authority
councils voted against devolution
proposals, citing concerns about
post-Brexit funding. This has further
threatened the devolution programme,
with councils losing faith in previous
promises. However, their concerns
may not be justified. Philip Hammond,
Osborne’s successor as Chancellor, has
guaranteed EU funding for thousands
of organisations, including businesses
and universities.
Projects with a focus on economic
development will be supported, and
organisations are being encouraged to
bid for EU funds while the UK is part
of the EU. Among those to have been
given reassurance from government are
the Thames Valley Science Park and the
Manufacturing Growth Programme
in the Midlands, both of which receive
funding from the European Regional
Development Fund.
Conclusion
The precise detail of how the new
Cabinet will address devolution
remains to be seen. It is clear that
local authorities are apprehensive
about the future, which may limit
their enthusiasm to engage. With
a possible general election and the
terms of Brexit to be negotiated,
devolution is one of many issues that
must now be addressed.
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ADVERTORIAL
SECTION
ARTICLE TITLE
The smart
money always
bets on ideas
From steam trains to graphene,
Britain – and particularly the north –
is known for inventions that change
the world. Simon Walker picks three
ideas that could change the future
“E
verybody has a book in
them,” it’s said, but very
few of us actually get it out
and on to paper. Joseph Beuys, the great
20th-century sculptor, performance
artist, thinker and founding member of
the Fluxus group, famously declared
that now “everyone is an artist”, though
he didn’t mean that everyone should
take up a paintbrush!
It’s a common assumption that
unlocking creativity and finding the
way to express it is the work of the
arts, design and the creative industries.
That may be so, but it is also the key
to the holy grail of contemporary
buzzwords, innovation.
So does everybody have an invention
in them? Innovus has certainly
demonstrated in its first three years that
there are more ideas around than
usually see the light of day and that the
best of those ideas if nurtured and
encouraged will create jobs and
stimulate further investment.
Innovus is the creative approach
to technology commercialisation
being taken by the University of
Manchester and the National Nuclear
Laboratory, two organisations that
have important facilities and expertise
across the Northern Powerhouse,
including at its most remote corner,
on and near the Sellafield nuclear
licensed site in Cumbria.
A vital part of the Cumbria Local
Enterprise Partnership’s strategy for
growing the county’s innovation sector,
other LEPs are pursuing the Innovus
approach for their areas, the most
advanced of these being Cheshire
and Warrington.
At the time of February’s New
Statesman Northern Powerhouse
report, Innovus had created over 50
jobs with a further 300 forecast. Six
months later, the total is nearly 80 jobs
and 472 are expected to result from
current investment.
Whilst the four companies
highlighted then have all progressed
their technologies, here we feature
another three that demonstrate the
impact that Innovus is having, and
emphasise the exciting flow of ideas
through the innovation pipeline.
There are
more ideas
than see the
light of day
A potentially world-changing technology
It was while working in Nigeria on a
waste-to-energy project that Matt
Simpson, the MD of Typhon Treatment
Systems of Penrith, first took up the
challenge of creating the most energyefficient water treatment possible.
He soon realised that his solution had
to succeed. Water is vital to life and in
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an increasingly global world, the supply
of clean drinking water is essential.
It is expected that the replacement of
existing ultra-violet (UV) water
treatment technology with Typhon’s
UV LED system will result in an 80 to
90 per cent decrease in energy usage.
This decreases the cost of water
purification, reduces greenhouse-gas
emissions, and enables the use of
alternative energy sources to power the
water treatment system. This effective
and efficient water treatment will
transform the ability of the developing
world to provide sufficient supply for
its people and bring substantial
health benefits.
Innovus has worked with Typhon
throughout to accelerate the
development of the technology towards
practical implementation.
Wearable technology that reduces risk
in hazardous environments
With many years’ app development
experience, Mobetrics was set up
to deliver rapid and high-quality
solutions – using wearable and mobile
technology – to clients big and small.
Being Cumbria based, the nuclear
industry was always going to be a
target, and wearables are already
starting to show potential to address
some of the sector’s challenges.
Utilising Google Glass technology,
the Second Sight software allows visual
data to be captured and relayed
wirelessly to remotely stationed
support staff, who can then
communicate information to the
operator via the screen on board the
glasses. A range of real time health data
is collected through the use of wearable
heart rate monitors and core body
temperature sensors as well as radiation
dose, again provided to operator and
support team.
Working closely with Sellafield Ltd
through its Game Changers
programme, delivered by Innovus and
the National Nuclear Laboratory, the
technology is being developed to meet
real plant requirements, where access
and conditions are difficult.
The story so far...
Number of
inventions
assessed
301
Public
investment
in innovative
technology
£1.80m
Jobs created/
safeguarded
79
Further private
investment leveraged
£1.37m
A neck protection system for
high-speed sports
It was in 1941, six years after T E Lawrence
died after crashing his 988cc Brough
Superior motorcycle, that the first
helmets for motorcyclists were made
mandatory in the British army.
Within five years, the rate of fatal
accidents had fallen from its peak of 200
per month to 50, though it was another
quarter of a century until the wearing of
helmets became mandatory for civilians
in 1973. After Ayrton Senna’s death in
1994, Formula 1 made great advances in
protection of drivers’ necks in the event
of a crash, using the support of the car
itself, but motorcyclists remain
extremely vulnerable to neck injury.
The human head is a heavy part of the
body and, when the distance of its
Additional
jobs forecast
from current
projects
393
connection with the torso and the
weight of a racing helmet are added,
the likelihood of injury from an impact
at speed is high.
Amaya Munoz, the founder of
INNDE Innovation and Design
Engineering, has designed a helmet
restraint system to change this.
The system partially absorbs the
energy of the crash and disperses it
away from the neck area to the scapula,
reducing neck loads. The novel
solution mimics the shape and function
of the neck bones and muscles,
providing comfort and flexibility in
normal use, but additional strength in
the event of a collision.
To discover more inventive ideas visit:
www.innovus.org.uk
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