What Effect is the Northern Powerhouse Project Having on Businesses in the North?
In terms of economy, the North has always taken the back seat to the South. Consequently, the Northern Powerhouse proposal was set out by the government, focused on boosting the economic growth in the northern communities. Whether it’s in corporate or transport infrastructure, the aim is to have the northern economy booming on par with the south; namely London.
Consequently, many people are expecting the scheme to impact businesses positively. Let’s see what effect it’s really had.
Businesses are tough to build from the ground up, and there are many struggles to overcome before they get a chance to fulfil their full potential. Unfortunately, failure is common for most of them, and a waning economy is often blamed as the cause. It’s an uphill struggle that is nigh on impossible to beat if the economy isn’t facilitating business growth. For many entrepreneurs, the toughest hurdle to overcome is often the first; getting their business off the ground.
However, Northern Powerhouse have enabled SMEs to thrive and recruit in the past year, creating jobs and spearheading rates of growth. Leeds and Manchester are particularly potent areas for this, as technology startups are standing shoulder to shoulder with industry pioneers that have bases in the cities. All in all, this is providing a strong foundation for accelerating corporate growth.
Innovative ideas can only come to fruition with some robust support from well-known names. The recommendations of world renown corporations can spark change and really provide that exposure a movement needs to gain traction. While Northern Powerhouse has attracted its fair share of naysayers and critics, the negativity is being drowned out by more experienced voices.
For example, leading audit and tax consultants RSM have made their opinions clear, and have publicly supported Northern Powerhouse in its quest for economic growth and stability in the north. They mainly for support the celebration and nurturing of Northern talent, and to enhance connectivity across the key hubs in the North. This public endorsement for regional synergy only enhances the prospects of northern businesses, and further brings these needs into public awareness.
Undoubtedly, 2016’s EU referendum result will have an enormous impact not only on the Northern economy, but on the British and European economies and potentially the world at large. Trade deals are still yet to be fully ironed out, and the rights of migrant workers are in question too. Not many people know where they stand yet. Put simply, Brexit will impact Northern Powerhouse and their work for businesses and the Northern Economy, and it’s likely to be a negative influence too.
Striving for business growth in a turbulent political period is a balance hard to maintain. Trade with EU corporations are what drove many established Northern businesses to their success, so to see these opportunities be potentially relinquished will no doubt pit many Northern corporations into disastrous circumstances. It’s also worth asking if economic stability is the goal of the government in light of Brexit, or whether ulterior motives will prevent the Northern economy fledging out to its fullest potential.