Update: March 2023 - an updated version of this report with an altered focus is now available here.
Businesses across the north of England already play a major role in creating jobs and generating economic growth, and by doing so they are helping to rebalance the UK economy. To achieve the ambitious aims set out by Government in its Northern Powerhouse (NPH) initiative and the emerging Industrial Strategy, northern entrepreneurs will be key to success. For the first time, this report brings together proposals from FSB’s members right across the north to form a clear and cohesive policy approach. Our ambition is simple. Within a decade, we want to make the north of England the best place in Europe to start-up, run, grow and scale-up a small business.
We want people across the UK, Europe and, indeed, the world to recognise the north as a powerhouse for small business enterprise and growth. Indeed, it is only by nurturing and encouraging entrepreneurship (and investment) that we believe that the Government will be successful in increasing the growth rate of this economy.
Our success will depend on commitment and a set of targeted policy actions. But their impact, and the communities we involve, must include all those across the north: from the Humber to the Solway Firth, from Northumberland to Merseyside. The focus must be on small businesses at each stage of their growth journey, including the self-employed, starts-ups, businesses with moderate growth ambitions and scale-ups.
This report sets out the policy goals to bring our vision to life. Over the last year we have held policy roundtables across the north of England, and surveyed our members across the north, creating a robust evidence base for our recommendations.
This is not just about funding, although investment in digital and transport infrastructure – especially local roads – will be essential. This is about making better use of existing business support organisations such as Growth Hubs and the 11 Local Enterprise Partnerships (LEPs) in the area, based on new research and proposals to improve their approach to small business support. Business owners report the importance of increasing the skills base and talent pool available to them, and so we believe that existing bodies such as Transport for the North should be joined by a skills body, that we suggest is called People for the North.
In 2016, FSB members across our area voted in large numbers to both remain in, and to leave the EU. This report is not the moment to reignite that debate, and we see both opportunities and risks for our local areas. But the nearer that Brexit approaches, the argument for interventions for the north of England intensifies. The Industrial Strategy sets out the UK Government’s plan to address serious long-term economic challenges, and so improve living standards, growth and productivity. Structural economic challenges in the north must be tackled, and this report tells the Government how to do it.
European Structural and Investment Funds have underpinned business support and access to finance to businesses across the north. It is vital that support remains, but as that funding is reviewed by the Government for the future we see an opportunity to simplify and improve those schemes in our area.
Ultimately, we represent businesses in every corner of the north of England. We know their entrepreneurial spirit, and without barriers put in their way they will generate the jobs, growth and productivity we need to further rebalance the economy. We hope that this report lights the way for policymakers of all parties, in local and national Government, telling them how to produce an Industrial Strategy for the north. It is only by helping small businesses to achieve their ambitions that we will see a genuine Northern Powerhouse.