Finding a new focus
Following the recession, now is the time for Yorkshire to reposition its offering to the world.
Yorkshire has not had a good recession. In the wake of the financial services crisis it is clear that the sector can no longer be relied upon to drive the Leeds and wider Yorkshire economy to any great degree. At the same time the property bubble was at its largest in cities such as Leeds while the wider region has lost upwards of 30,000 professional property jobs alone over the last year. And then there is the public sector, where looming cuts cast a giant shadow, just like they do over most northern economies. Government funding over the last decade has been the major economic catalyst in cities such as Sheffield.
So what now? Talk to economists and there is a widespread view that some permanent pain is heading the north’s way because of its heavy dependence on the public sector. Aligned to this are real concerns that GDP per head and wage levels could start to differ between north and south as the recovery starts.
The region survived the last industrial slump 20 years ago by refocusing itself and becoming a centre for financial services. The proof is all around the region today, which is now home to an impressive 240,000-strong workforce in the sector, the largest outside London. The difference back then was that Yorkshire had a lengthy period in which to redefine itself and rebuild. In today’s fast-moving world, where competition comes from all corners of the globe, it has to be far more fleet of foot in terms of repositioning itself, and retraining and up-skilling its workforce.
The big, big question for the region is where it should redirect its efforts. Much hope is put in its power industry, where areas such as refining are seen as significant looking ahead. Could Yorkshire also become a major centre of carbon capture? All those empty mineshafts could certainly be put to good use. Yorkshire could once again become the power station of the UK if sufficient long-term investment is put in. Much hope is also laid at tourism’s door, and especially its business tourism sector. The day visitor market is a huge boon in the county and there is significant potential for growth because of the wider strength of the Yorkshire brand.
But who will champion Yorkshire? With question marks hanging over the future of the regional development agency structure nationally, the region is pinning much hope on the development of the Leeds city region initiative to get key projects rolling in areas such as transport, innovation and skills. The move is to be applauded and makes a lot of sense as Leeds tries to mirror the success that Manchester has had in speaking with one unified voice to the wider world, especially in areas such as attracting inward investment.
So far the political soundings in Westminster have been positive, and there is no reason to doubt that a Tory government, if elected, will remain favourable to the idea too. Exponents of stronger city regions in Leeds, not to mention the likes of Bradford, York and Sheffield, certainly need the support of business to lend weight to their vision. Here progress remains slow, not least because companies have had far better things on their mind in 2009 such as coping with the downturn, and much lobbying remains to be done.
Jim Pendrill
Editor of Yorkshire Business Insider