What the Yorkshire Northern Powerhouse means to: Kier executive director, Nigel Brook

As Bdaily’s Northern Powerhouse series continues to give the business people of Yorkshire the opportunity to voice their opinions on the the government’s Northern Powerhouse initiative, we recently caught up with Nigel Brook, Kier executive director, construction and infrastructure services.

Hi Nigel, so what do you think the Northern Powerhouse will do for Yorkshire?

At Kier, we believe that investment in transport infrastructure will be the biggest win for the regions as the government strives to deliver a tangible sense of a Powerhouse. There is a very clear and critical need for improvement in road and rail connectivity to increase social and commercial mobility, and it is the most logical way to invest to stimulate the economies of the Northern Powerhouse.

In addition to the major headline transport projects being mooted, like HS3 and the Trans-Pennine tunnel, in Yorkshire projects like the £250m trolleybus scheme in Leeds, the rail replacement programme for Sheffield’s Supertram network, the electrification of the Selby to Hull rail line and the completion of plans to increase the M62 capacity through ‘smart motorway’ principles could also help kick- start wider economic regeneration.

It’s important to remember that the Powerhouse is not a kitchen sink solution covering all the needs of the North; many other economic activities will be picked up at a combined authority or local authority level. But it is a clear commitment from government to invest in the North where it can stimulate collective benefit, and this will be significant for Yorkshire.

What will the Northern Powerhouse do for Kier?

If we looked at the Powerhouse in terms of its own economy, it would reach £300bn and would, in real terms, be twice the size of Scotland. It’s a geographic area with tremendous potential and we currently employ over 5,500 people in the north across the four Kier Group divisions, which offer a unique breadth of capabilities.

We are working on key projects across the Powerhouse region such as Trans-Pennine tunnel and M60 quadrant feasibility study as well as the Bolton Transport Interchange, Sovereign Square office development in Leeds, Mersey Gateway project in Liverpool, and Swans redevelopment in Newcastle. Our growing operational presence also means we are able to have a meaningful impact on wider social issues and we are currently generating over £2bn of wider economic activity across the region.

We are well placed to help both the private and public sector rise to transformational challenges, and in turn will provide economic stimulus in the north through jobs, local supply chain use and wider regional investment.

Has the government done enough to convince you of its commitment to Osborne’s vision?

Following the recent release of Transport for the North’s Spring Report, which detailed progress on major government investment across road and rail, the National Infrastructure Commission’s report and budget, we now have a much clearer view of how the vision for the Northern Powerhouse could be turned into reality.

However, there is a vital need for a step change in infrastructure investment in the north of England if the Powerhouse model is to be exploited and the GVA potential of the north’s six key cities is to be better leveraged.

These strategic reports and government commitment bring welcome momentum to existing plans to improve connectivity and reinforce the importance of headline projects such as HS3, which, if fully exploited to reach cities like Hull and Liverpool, could make a significant difference to mobility and economic output. But importantly, they also look at more immediately deliverable projects, ranging from improvements to the M56 to station regeneration investment akin to Kings Cross for Manchester Piccadilly, to make sure the Powerhouse starts to become a reality.

Connectivity has been a major driving force behind the Northern Powerhouse. Do you believe that spending billions of infrastructure will improve the economic climate in the North?

It’s not necessarily about spending a large amount, but making sure that the right investment is made in the right places to deliver maximum benefits. CBI data has shown that every £1 spent on key building and infrastructure activity generates a further £2.59 of wider economic benefit in the northern economy. The ripple effect of investment in transport infrastructure can also be used to trigger urban regeneration, such as new housebuilding and wider commercial development, so it doesn’t just provide direct connectivity benefits.

We have seen this on several of the projects we are delivering in key cities within the Powerhouse region. When you look at a recently completed project like the Wythenshawe Interchange, it has kick-started substantial wider regeneration that has witnessed increased footfall of around 10,000 people per week, created wider business stimulus of 1,500 jobs and seen house prices rising by up to 60% in just four months – a pace only exceeded in Chelsea across the UK.

However, with headline-grabbing projects like HS3 and the Trans-Pennine Tunnel becoming synonymous with the Northern Powerhouse, there is a danger that equally important core transport investment programmes are glossed over. In reality, they have much more immediate scope and are more affordable to deliver.

Yorkshire has already done much to stimulate its own economy – such as Sheffield securing £119.5million for the Sheffield City Region Infrastructure Fund, Leeds developing its 10-year £1bn transport fund and Hull planning a new £35m cruise terminal, as well as preparing for City of Culture 2017 – but it is only logical that even greater connectivity would enable this stimulus to be shared.

What, if any, other sectors/industries should the government key in on to achieve a Northern Powerhouse?

The North has huge untapped potential. There are several areas of excellence where manufacturing, science, innovation, energy, financial services and more can thrive.

Are there any other areas which you believe money should be spent on, ahead of transport?

No, we believe it is right to start with transport infrastructure. This is the key driver to creating a Northern Powerhouse: connecting the cities via rail, road and air and improving connectivity within the cities themselves.

However, it does need to be matched with a significant investment in education and skills in order to build a talented and sustainable workforce that can capitalise on the opportunities being delivered.

As with Sheffield, should the other regions in Yorkshire try to strike a devolution deal with the government?

Giving local authorities a greater say on how their areas are run makes great sense. Local authorities understand the needs of their areas much more intimately than remote bodies in Westminster. Members of the Sheffield City Region have just recently agreed the terms of their agreement and other Yorkshire regions are still very much in discussion so we are yet to see their proposals.

However, I believe that the key to making devolution work as part of the Powerhouse is the devolved regions do not work in isolation. All regions will need to work together cohesively to benefit each other as well as themselves.

Will the Northern Powerhouse be realised in Yorkshire?

The government has given a clear commitment to Yorkshire through £60m for the development of HS3 and £75m to develop plans for Trans-Pennine Tunnel, so the momentum for realising projects across Yorkshire is beginning. It will take time for these studies to translate into clear recommendations for a construction phase, but in the meantime there are key shorter-term projects in progress such as Sheffield’s Supertram network, electrification of the Selby to Hull line and completion of plans to introduce the Smart Motorway principle on the M62, all of which have more immediate scope and are more affordable to deliver.

And it’s that blend of short- and longer-term investment that is more likely to create a tangible Powerhouse and make a real difference to inter- and intra-city connectivity, rather than a simple reliance on one or two key headline projects.

Thank you Nigel.

Don’t miss our latest Northern Powerhouse coverage here. To nominate a Yorkshire business leader to be part of our new series, contact Nick at nick.hill@bdaily.co.uk.