Columnist

When will our regional economy grow?

As an advisor on property assets, the question about regional economic growth has dogged me for a considerable period.

The strategy of austerity since 2010 has not worked. The emerging strategy for growth is struggling.

It is refreshing that the Chancellor is trying, but actions and clear messages to give confidence to business are much needed.

The truth is that kick-starting economic growth is not available to any political party: they are all constrained by the same criteria.

The only route available to grow the gross domestic product is to increase the tax take. 

This will realise more finance to invest and begin to grow the economy. 

My thoughts were triggered during an excellent day at the North East Combined Authority's Wind; Sea; Ports; People and Innovation event.

A new tranche of the North Sea for wind generation was announced, which will increase the largest wind farm in Europe to the largest globally.

Service of this infrastructure investment can be done from our four regional ports – Blyth, Tyne, Sunderland and Teesside.

The success of the Blyth, Tyne and Sunderland ports was profiled at the North East Combined Authority event. 

We should be proud of their achievements over a challenging period economically, and for overcoming the paradigm change of factors over the last few years shifting from coal haulage to clean energy.

Out two international airports – Newcastle and Teesside – are growing in a globally competitive market.

Our rail service has national challenges, but investment to open the Northumberland Line is a huge achievement. 

Plans to invest and open the Leamside Line are essential to further increase rail capacity.

Compared to other regions, our road transport is not bad – but neither is it good.

My activity in economic regeneration and development over the last 40 years has seen the mantra to achieve economic growth – making good access to, from and moving around within the region – proven. 

But we must do better.

The latter has seen growth around transport hubs. 

My involvement in Hull, York, Darlington and Hexham has shown what can be done.

Transport alone is not the answer, but an important part of delivering growth.

The green energy revolution is providing scale up opportunity for regional businesses.

Our academic institutions are helping develop new skills and creating research and development centres of excellence.

The result is world-leading expertise.

We are seeing collaboration politically, among the ports and those North East green pioneers.

But there is a shortage of deliverable employment sites and buildings.

Property will not create economic growth, but any shortage will retard, if not arrest, growth.

While there are sound plans for sites around the ports, the supply of land and buildings for the wider supply chain and investors in other sectors needs to be addressed as part of the wider regional economic strategy.

The challenge is the cost and time to remediate sites, deliver planning consent in a timely manner and ensure that development is viable.

This delivery of investment can be achieved by building on success and strengthening partnerships. 

It needs to motivate those involved in the delivery of our vision and find ways in which viability is achieved to meet the needs of those investors.

It’s not a simple task, but it does have potential to succeed and make the region even more attractive to investors both nationally and globally.

Before concluding, I give a shout-out to Bdaily publisher NET. 

I’m proud to have been involved with others in the promotion of the region through NET’s VISION 31 initiative and the subsequent devolution white paper, titled Raising the bar: A blueprint to supercharge North East growth.

We are poised at a unique window of opportunity that can achieve much-needed growth for the region and be seen to lead the country.

Kevan Carrick is co-founder and owner of JK Property Consultants LLP. He is a member of the RICS Land & Natural Resources Professional Group Panel that consulted on the National Planning Policy Framework, and is chair of the North East Business and Innovation Centre (BIC).

Looking to promote your product/service to SME businesses in your region? Find out how Bdaily can help →