North of England sees lowest investment of advanced economies, think tank finds
The North of England receives one of the lowest levels of investment among advanced economies, a think tank has said.
Greece would be the only OECD nation to see less public and private investment, if the region was a country, according to a new IPPR North report.
Researchers found the UK as a whole ranks 35th out of the 38 OECD countries in terms of receiving the least investment.
Slovakia, Poland and Hungary all enjoy more investment than the UK.
If the OECD average was applied to the UK for 2017 to 2020, £397bn more would have been invested.
The report said the UK and the North are being held back by “vast inequalities” and “systematic underinvestment” in research and development, social infrastructure and transport.
The extent of regional disparities is shown in the report, including how productivity is around £7 lower per hour worked in the North than the England average, while hourly pay is £1.60 lower than the rest of England.
Northern mayors, Levelling Up Secretary Michael Gove and Labour’s shadow levelling up secretary Lisa Nandy are all set to attend Convention of the North today – a gathering of business, political and civic leaders from the region.
Political leaders in the region will argue that levelling up the North and South should be “hard wired” into UK law as they call for more long-term funding as opposed to the current competitive bidding system.
Ms Nandy will accuse the Conservatives of having “written off” areas that once fuelled the UK economy, while Mr Gove will say his government has over “the greatest transfer of power form Whitehall to local leaders across England in modern times”.
Only Greece has less investment than the North out of the OECD countries
Read more: Sunak denies favouring South with levelling up allocations
Marcus Johns, IPPR research fellow and report author, said: “Of all the advanced economies around the world, ours is the most regionally divided and getting worse – the North is at the sharp end of these divides and that’s a barrier to prosperity.
“But what’s even more unacceptable is that our country is divided by design. It is the result of decisions.
“The North’s strengths are national strengths. Northern prosperity can be national prosperity.
“It’s up to the government to unlock this potential, by acknowledging that it has to change, and by enabling empowered, well-resourced local government to coordinate and deliver long-term local visions for change.”
The report highlights other places in the world that were struggling but have turned their economies around, such as Leipzig in Germany, which is now the fastest-growing city in Europe thanks to industry and investment.
IPPR North director Zoe Billingham said: “The international evidence is clear – governments that let go of power and collaborate positively with local places can succeed in levelling up.
“Political leaders need to ‘zoom out’ and learn lessons from our international neighbours to achieve regional growth and narrow our aching divides. We know that private investment follows public investment.”
After announcing the latest recipients of the government’s levelling up fund last week, ministers faced accusations of favouring more affluent southeastern seats at the expense of deprived northern areas.
Leipzig was struggling but investment has seen its fortunes turned around. Pic: AP
A government spokesman said: “This report fundamentally misrepresents the clear steps we are taking to level up the region and we are committed to spreading opportunity across the whole of the UK, including the North of England.
“This includes investing £3.19bn through our levelling up funds for regeneration, transport and cultural projects and £3bn to transform local transport networks.
“The government has also helped secure inward investment, such as Credera in Manchester, Nissan in Sunderland and Equinor in the Port of Tyne, creating thousands of highly skilled jobs.
“We have also launched Freeports in Teeside, Liverpool City and the Humber to drive investment and signed new devolution deals in York and North Yorkshire and the North East, giving more powers to local leaders.”
Conservative Party leader Kemi Badenoch has called on Sir Keir Starmer to sack Treasury minister Tulip Siddiq over allegations she lived in properties linked to allies of her aunt, Sheikh Hasina, the deposed prime minister of Bangladesh.
It comes after the current Bangladeshi leader, Muhammad Yunus, said London properties used by Ms Siddiq should be investigated.
He told the Sunday Times the properties should be handed back to his government if they were acquired through “plain robbery”.
Tory leader Ms Badenoch said: “It’s time for Keir Starmer to sack Tulip Siddiq.
“He appointed his personal friend as anti-corruption minister and she is accused herself of corruption.
“Now the government of Bangladesh is raising serious concerns about her links to the regime of Sheikh Hasina.”
Ms Siddiq insists she has “done nothing wrong”.
Her aunt was ousted from office in August following an uprising against her 20-year leadership and fled to India.
Ms Siddiq is also named with her aunt in Bangladesh court documents about meetings with the Russian government.
Tory leader Kemi Badenoch has called on Sir Keir to sack the minister
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As economic secretary to the Treasury, Ms Siddiq is responsible for policy on both the City and tackling corruption.
She referred herself to the prime minister’s ethics watchdog on Monday following the reports about the properties.
On the same day, the prime minister said: “Tulip Siddiq has acted entirely properly by referring herself to the independent adviser, as she’s now done, and that’s why we brought into being the new code.
“It’s to allow ministers to ask the adviser to establish the facts, and yes, I’ve got confidence in her, and that’s the process that will now be happening.”
Police in Aberdeen have widened the search area for two sisters who disappeared four days ago in the city.
Eliza and Henrietta Huszti, both 32, were last seen on CCTV on Market Street after leaving their home on Tuesday at around 2.12am.
The sisters – who are part of a set of triplets and originally from Hungary – crossed the Victoria Bridge to the Torry area and turned right on to a footpath next to the River Dee.
Eliza and Henrietta Huszti were last seen on CCTV in Market Street. Pic: Police Scotland/PA
They headed in the direction of Aberdeen Boat Club but officers said there is no evidence to suggest the missing women left the immediate area.
Specialist search teams, police dogs and a marine unit have been trying to trace the pair.
The sisters crossed Victoria Bridge before walking along a footpath next to the River Dee
The pair were heading in the direction of Aberdeen Boat Club on the south side of the River Dee
Further searches are being carried out towards the Port of Aberdeen’s South Harbour and Duthie Park.
Police Scotland said it is liaising with authorities in Hungary to support the relatives of the two sisters.
Chief Inspector Darren Bruce said: “Eliza and Henrietta’s family are understandably extremely worried about them and we are working tirelessly to find them.
“We are seriously concerned about them and have significant resources dedicated to the inquiry.”
The sisters, from Aberdeen city centre, are described as slim with long brown hair.
Henrietta Huszti. Pic: Police Scotland
Eliza Huszti. Pic: Police Scotland
Officers have requested businesses in and around the South Esplanade and Menzies Road area to review their CCTV footage for the early morning of Tuesday 7 January.
Police added they are keen to hear from anyone with dashcam footage from that time.
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