North-South divide is closing claim campaigners

Nov 26 2007 by David Bartlett, Liverpool Daily Post

A REVIVAL of Merseyside’s economy, which substantially closes the productivity gap with the South, could become a reality within 20 years, according to new research.

The Institute for Public Policy Research North (IPPR North) said Government needs to develop a unified national spatial planning strategy and that the Northern regions must work together on a joint plan for the whole of the North.

It comes on the eve of the regeneration group Northern Way summit in Gateshead tomorrow where the £30bn output gap between the North and the South will be discussed.

On Friday, the world's leading economic policy body, the Organisation for Economic Co-operation and Development (OECD), completed a week-long visit to the North with Northern Way to examine current strategies to encourage innovation.

The OECD's findings will inform an in-depth study into what the barriers and opportunities are to innovation in the North and how new ideas can be translated into economic success.

The IPPR North says stronger policies are needed to improve the “drivers” of productivity, rather than focusing almost on measuring the performance gap between regions.

But the report also argues that this alone will not close the prosperity gap between the North and more prosperous regions.

The report argues that better rail links between Northern regions and between the North and the South are an economic and environmental priority.

Instead of focusing on reducing the relative size of the public sector, it should be seen as an engine for economic growth, with more emphasis placed on supporting the expansion of the private sector, which the report argues is currently too small.

The report also argues for a simplified benefits system with a flat rate for those out of work combined with a well-resourced, personalised approach to employment support policy.

The report says the focus should be on those aged over 50 and on re-skilling people out of work.

Sue Stirling, Director of IPPR North, said: “The North desperately needs a coherent spatial policy so that leaders across the three Northern regions can pull together a coherent plan which addresses the North’s weak transport links.

“We need to focus on the policies that will drive economic growth: employment, skills, enterprise and transport and the public sector.

“The North needs a strong public and private sector if it is to tackle deep-seated problems like high levels of unemployment and child poverty.”

davidbartlett