Reviving manufacturing in towns and rural and coastal economies could help unlock £70billion for the economy, a think tank claims.
The Centre for Progressive Policy said “areas with underperforming local economies contain hotspots of highly productive industry that, if nurtured, could jumpstart the UK economy and transform the fortunes of ‘left behind’ places”.
It called for a “manufacturing mission” aimed at encouraging private firms to invest and fire-up communities.
Publishing its latest report, Open for Business, the CPP highlighted towns such as Boston, Lincs; Scarborough, North Yorks; Stroud, Glos; Newport, Shrops; and Burnley, Lancs, as places which have “demonstrated impressive productivity growth in recent years” and would benefit from greater investment.
The think tank estimated that maximising investment potential in communities it identified would pump £70.2bn into the economy.
“Market forces, compounded by policy choices by successive governments, have directed investment into already prosperous local economies, particularly London and parts of the wider South East,” it said.
“A lack of skills, infrastructure and state investment in weaker local economies like those highlighted in CPP’s analysis leaves them in a vicious cycle, unable to attract the business investment needed to support growth.
“The impact is far-reaching; restricting the quality of jobs available locally, diminishing residents’ living standards and driving inequalities between places on a scale that has created seismic shifts in the UK’s political landscape in recent years.”
Report author Ross Mudie said a “new manufacturing mission should be the backbone of an ambitious strategy to revitalise UK enterprise and deliver fair growth across the UK”.
“Each day, more major firms are shifting investment out of the UK and towards our competitors across the Channel and Atlantic,” he warned.
“Government inaction means we are failing to encourage the level of private investment our economy needs and limiting the potential for growth beyond London and parts of the South East.
“But our analysis reveals many pockets of high-potential industry in small cities, towns and coastal and rural areas across the UK, largely in the North and Midlands.
“Encouraging business investment into these communities could transform their economic fortunes and boost the UK economy by £70bn.
“Government has a critical role to play to create the conditions to attract business investment into these places and industries.”
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