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What is the northern powerhouse and what is George Osborne’s plan for devolution?

Former Chancellor launches a think tank today to continue his agenda or greater powers and investment in the north

George Osborne

GEORGE Osborne first came up with his Northern Powerhouse plan two years ago while Chancellor and he says he is now even more determined to make it happen.

Today he launches a think tank called the Northern Powerhouse Partnership which will push his agenda of greater powers and investment for the regions to boost jobs and growth.

 Former chancellor George Osborne makes an announcement about his Northern Powerhouse project at Manchester Town Hall
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Former chancellor George Osborne makes an announcement about his Northern Powerhouse project at Manchester Town HallCredit: PA

He wants to end the north/south divide by encouraging the cities and counties of the north to work together.

Writing in The Sun today he said: “Individually, the cities and counties of the north are great – but get them working together, and they will be greater still.

“The way to do that is to make transport connections much better, back the skills, science and universities there, and then give local people much greater control over the way their communities are run instead of taking all the decisions 200 miles away in London.”

The Northern Powerhouse aims to devolve powers and money from Whitehall to northern city regions in a bid to boost their economic performance.
Plans included new investment in north-south high-speed rail, HS2, and an east-west version, HS3, linking the belt of northern cities from Liverpool to Hull, via Manchester and Leeds.

The plans also included the election of 'metro' mayors for bigger city-regions, including for Manchester, Liverpool and Sheffield.

 George Osborne's Northern Powerhouse project has been well received in the northern regions - including by Manchester City Council leader Sir Richard Leese, Liverpool's mayor Joe Anderson and the University of Manchester's president Dame Nancy Rothwell
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George Osborne's Northern Powerhouse project has been well received in the northern regions - including by Manchester City Council leader Sir Richard Leese, Liverpool's mayor Joe Anderson and the University of Manchester's president Dame Nancy RothwellCredit: PA:Press Association

There are fears the Northern Powerhouse is losing steam in Government now Theresa May is the PM.

But Andy Burnham and Steve Rotheram, both MPs and Labour's candidates for the mayoral elections in Manchester and Liverpool, recently warned Mrs May that pulling the plug on the "Northern Powerhouse" agenda would be, "as big a betrayal as the 1980s when Margaret Thatcher pulled the plug on our industries".

Mr Osborne, now a Tory backbencher, launched the Northern Powerhouse Partnership, claiming: "The Northern Powerhouse is here to stay."

He said: "When I launched the idea of Northern Powerhouse I said I would work tirelessly with anyone and everyone to make it a reality.

 George Osborne says he wants the northern regions to work together to become even greater than they are now
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George Osborne says he wants the northern regions to work together to become even greater than they are nowCredit: PA

"But even I have been taken aback by the huge support it's attracted, across political parties, businesses and communities.

"In the space of just two years, we've created powerful new mayors, committed to huge new transport and science projects, and attracted investment from around the world.

"There's a real excitement now in the north about what we can achieve if we work together.

"I don't want us to lose that.

"That's why I'm so pleased major businesses, civic leaders and others have worked with me to create this new Northern Powerhouse Partnership.

“I'm also glad that the Government has given its support."

But speaking on BBC Radio 4's Today programme he said: "I think, to be honest, there was a little bit of a wobble when we had the new administration about whether they were still committed to the concept of the Northern Powerhouse."

He added: "I'm the first to say we need economic development across the whole of the country.

"I sweated blood to get a mayor for Birmingham.

"That was one of the most difficult things I pulled off in office. I'm passionate about building out the engine of the West Midlands.

"But in the North of England, there is a particular opportunity because the cities are close together.

"The Northern Powerhouse Partnership that we are creating will be led by the business community, it will have Labour and Conservative civic leaders involved in it.

 Theresa May has said the Northern Powerhouse scheme focuses too much on 'one or two of our great regional cities'
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Theresa May has said the Northern Powerhouse scheme focuses too much on 'one or two of our great regional cities'Credit: Getty Images

"And I can tell you today that the former mayor of New York, Mike Bloomberg, is going to work with the Northern Powerhouse Partnership to help the newly-elected mayors next year get the best experience from around the world to make a success of governing in this part of the country.

"To have someone of his experience involved in this is a great start.";

Sajid Javid MP, Secretary of State for Communities and Local Government, said: "This Government realises the huge untapped potential of our great northern towns and cities.

“That is why I warmly welcome the launch of the Northern Powerhouse Partnership.

"I hope it will become an important part of the debate and help us to do all we can to further boost jobs, growth and opportunities in the north of England."

 Communities Secretary Sajid Javid has publicly supported the project
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Communities Secretary Sajid Javid has publicly supported the projectCredit: Fame Flynet

Ed Cox, director of Institute of Public Policy Research North (IPPR North), said: "We warmly welcome a new think-tank focused on the North of England.

"IPPR North has long argued that to make the North the most progressive place in Europe, we need more policy ideas, not fewer.

"This can only reinforce the reality that the Northern Powerhouse is far less a Whitehall programme and far more an initiative driven by northern business, innovation and leadership.

"It remains to be seen whether this new think-tank will develop an inclusive approach to the Northern economy because to date, George Osborne's Northern Powerhouse has been too narrowly focused on big cities and metro mayors - vital as these are, they will not address the economic and social challenges raised by the Brexit vote."

 

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