A VIEW FROM THE SECTOR
Westminster
looks to the
Northern
Powerhouse
The ‘Northern Powerhouse’ has been a concept floating around in the back
of the joint business consciousness for nearly a year. It promises to join
the North together to become an industrial and commercial power to rival
London, as well as the rest of the world. Before the general election it was
just an idea. But now, Chancellor George Osborne has set out his plan to
slowly turn it into a reality that promises to create a much larger, stronger
and connected business hub in the North.
Initial Focus
Greater Manchester, has been given
£6bn from the £115bn national
healthcare budget to run hospitals,
GP surgeries and adult care as well
as having the power to set budgets
for transport, housing, police and
healthcare as part of their devolution
deal. To be eligible for devolved power
cities must have an elected metro
mayor, which Manchester will have
from 2017.
Good news for business
Sheffield and Leeds have signed up
for their own devolution deals that
will give the local authorities and
business leaders greater say over
how they grow the local economy,
and puts them firmly on the Northern
Powerhouse map.
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The Conservative manifesto said they
would support science and technology
in the Northern Powerhouse by creating
new institutions like the Royce Institute
for Advanced Materials in Leeds,
Liverpool, Sheffield and Manchester. In
addition, George Osborne announced an
£11m investment to create technology
incubators in the healthcare sectors of
Sheffield, Leeds and Manchester.
Construction on the HS2 train line may
not finish until 2033, but the investment
signals that the North will not be
forgotten. Plus, the newly established
Transport for the North (TfN) has set
out a ‘TransNorth’ plan which will cut
the train travel times between Hull,
Manchester, Leeds, Sheffield and other
Northern cities to allow cities to work
together rather than against one another.
Impact on healthcare
Cities with a directly elected mayor
can control their own healthcare
spending with money from the
national NHS budget. Manchester was
given this opportunity in April 2015,
and will be fully in control within the
next 12 months. The money will be
managed by a new strategic health
and social care partnership board,
which comprises of representatives
from councils, hospitals, Clinical
Commissioning Groups and local NHS
England management.
Inspiration from Germany
Europe’s industrial powerhouse of
Germany has an enviable model of
devolved power, with its federalised
model seeing power and legislative
responsibility spread across the
county. This has supported a range
of medium-sized companies which
provide a large number of jobs and
are extremely productive - they are
known as ‘Mittelstand’.
A move towards this sort of model
in the UK could bring real benefits
to Northern SMEs.
The eyes of the country will be on
the North as the Northern
Powerhouse goes from vision to
reality. If devolved power brings
success, then other cities will follow
suit to hopefully result in a thriving
economy to rival London.
Professor Paul V Hatton
School of Clinical Dentistry,
University of Sheffield
The most obvious benefits for
patients are the accelerated
development of technologies and
their delivery via industry to the NHS
and beyond. However, wider benefits could have an
even greater impact via investment in an innovation
community that includes clinicians, academics, and
the whole health technology supply chain.
Graeme Hall
Managing Director,
Brandon Medical Co Ltd
The Northern Powerhouse will
enable focus on SMEs which most
authorities accept are the engine
for future growth. A coordinated
approach of the Northern Cities rather than competing
with each other, will create opportunities for SMEs to
grow and for local support to drive the growth faster.
Major improvements to infrastructure are needed in
the North to improve transport links along the M62
corridor. Investment in infrastructure will provide jobs
in the short term but also long term improvements to
our efficiency and quality of life.
Leeds City Region Northern Powerhouses
‘In Leeds by harnessing local clinical, academic
and business strengths, the first truly
integrated patient record has been created.
This is now being shared across the country
through the NHSE tech fund Ripple project,
creating value for the NHS and local business.’
Sheffield City Region Northern Powerhouses
Medilink will be keeping a close
eye on any Northern Powerhouse
developments. If you have any
questions about how the changes
may affect your business, contact
Medilink at [email protected]
‘A £4m funding boost secured by the University
of Sheffield from the Engineering and Physical
Sciences Research Council, has resulted in the
building of a engineering test centre in Sheffield
which could ultimately position the UK as a
world leader in structural dynamics.’
Sheffield City Region Northern Powerhouses
‘Alongside the UK’s premier Advanced
Manufacturing and Technology Park, Sheffield
will play host to Sheffield Hallam University’s
Advanced Wellbeing Research Centre (AWRC)
which has received £14m of funding from the
Government and secured a £1.5m deal with
major partner Toshiba.’
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