Experience Invest: Boris Johnson's Northern Powerhouse project

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Experience Invest Talks about Boris Johnson's Northern Powerhouse project


Welcome to the Experience Invest property blog. Experience Invest has been in the property market since 2014. Having access to exclusive investments in various top-performing asset classes, it offers opportunities to property investors not only in the UK but also overseas. In today's blog, we share about what we can expect about Johnson diverting more focus on rebalancing power by devolving power from Whitehall to elected mayors and local leaders – a move that has garnered the support of business leaders in the region, who want to see the North take greater control of its own progress. Let's get started.
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The Northern Powerhouse. A concept coined by ex-Chancellor George Osborne five years ago, which at the time symbolised his ambitions to unite the great cities of the North – from Liverpool to Hull – and eradicate the North-South divide. Different strategies were laid out to achieve this goal, including the upgrade of modern transport links to better connect Northern cities like Liverpool and Hull, increased digital connectivity, devolved power to local authorities, and increased investment.

Collectively, it was hoped these steps would fuel powerful economic growth and enhance the prosperity of the North. Five years on, statistics confirm that substantial progress has been made. However, there is still much to be done to ensure that we build on the momentum and promote long-lasting, tangible benefits to those living and working in the North. With Boris Johnson stepping as the new Prime Minister, there is now an opportunity to reinvigorate the project. But how will Johnson go about injecting new life into the Northern Powerhouse?

Where does the Northern Powerhouse project stand today?

On balance, the project has thus far been successful. However, we cannot ignore some of the shortcomings that have been encountered. IPPR North pinpoints a lack of spending as a possible downfall, nothing that while transport spending in the North had increased by £149 per person in real terms since 2014, this was less than half the £330 per person increase in London. In practical terms, this has resulted in major falls in the quality and reliability of transport – almost one in every 20 transport services were either canceled or more than 30 minutes late arriving at its destination in 2018-19. To counteract this trend, we need to see some bold measures adopted by the government which is aimed at supporting transport and infrastructure.

Does Boris Johnson have the answers?

As it currently stands, this is precisely the approach that Boris Johnson appears to be supporting. At the end of July, during a speech delivered in Manchester, Johnson unveiled his plans to fund a high-speed rail route between Leeds and Manchester, asserting that this would help “turbo-charge the economy”.

More generally, the new Prime Minister has promised to rebalance power, growth, and productivity across the UK – with improved public services, enough affordable homes and more responsibility and accountability at the core of this ambition. How these promises will play out in practice remains to be seen. However, I am encouraged by the fact that Boris Johnson has placed the Northern Powerhouse at the heart of his strategy so early on in his role.

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