PRIMING THE POWERHOUSE A Business M anifesto for England’s North West

1. PRIMING THE POWERHOUSE A Business Manifesto for England’s North West Presented by the North West Business Leadership Team MARCH 2015

2. Foreword- Juergen MaierCEO Siemens UK &Chairman, North West Business Leadership Team The North West Business Leadership Team brings together leaders of 30 of the region’s most significant businesses in manufacturing, service, utilities, professional services as well as its leading universities. We provide thought leadership on the big issues which most concern North West businesses – skills for industry; our transport infrastructure; promoting our world-class science and technology; and optimising our high quality resources. All of these are fundamental to our prospects of delivering real, sustainable economic growth in North West England in the years to come. During 2013 and 2014, working with local enterprise partnerships and local and combined authorities, we published reports setting out our principal recommendations in each of 4 focus areas and we have held a number of meetings with MPs to discuss the issues raised. We will continue to work with both Government and Opposition parties to play our part in building the ‘Northern Powerhouse’, maximising the potential of the North West as a great place to do business, encourage investment and promote economic and employment growth. To complement our own actions towards these business goals and help make economic rebalancing a reality, we welcome the proposals for devolved powers for Greater Manchester and continue to strongly support the devolution of decision-making powers to other Northern city regions, with strong local governance. The time has clearly come for substantial increases in the functions, decision-making powers and funding to be allocated to the North of England, particularly to the major City Regions and the Local Enterprise Partnerships. This document sets out our main priorities for action if we are to achieve these objectives. We look forward to working with the North West’s MP’s, local authorities and other key partners, throughout the next Parliamentary term, to help secure the very best future for all our citizens in the years ahead. 1

3. The Priorities for ActionWe consider the 4 top priorities for action in the region are found in Skills, Transport, Science and Resources • Skills • Take ownership of skills strategy in specific economic areas, eg Greater Manchester, so as to reform the way training provision is delivered and address the root causes of our skills deficiencies • Increase levels of aspiration amongst young people from all backgrounds. Text • Transport • Confirm and accelerate current proposals for our long overdue rail infrastructure investment (particularly the HS2 and the TransNorth proposals) • Boost the region’s domestic and international competitiveness through enhanced connectivity by road, rail, air and sea. • Resources • Gain support for our proposals to maximise the North West’s capacity for food, water and energy supply • Offer future security in these essential resources and open up opportunities for potential investors • Science driven Innovation • Publish and promote a Prospectus of the North West’s world-class science, technology and innovation (including advanced materials; energy research; cancer research; and high performance computing). • Attract the necessary national and international investment to exploit this excellence • Translate this research into commercial products manufactured in North West 2

4. Bridging the DivideHow addressing the skills gap would stimulate economic growth in North West England and nationally Report Recommendations • Establish a single mechanism within each LEP area to promote engineering and manufacturing careers to students, linking closely with a well-informed national careers advice service. • Create a single signposting industry-led body in each LEP area to help SMEs identify the most appropriate providers to meet their specific needs. • Undertake one strategic design review to define and propose a long-term national skills framework within which each LEP area would develop its own delivery system. (This could be piloted in City Regions across the North of England.) Our Response • NWBLT members are investing heavily, in time and money, to help overcome the skills gap. The North West has the highest number of apprenticeships in the country – over 70,000 more than any other region. Substantial further investment is necessary if our skills are to rise to the levels of other leading economies • We believe the measures set out in our Skills for Industry report would simplify and streamline the system, enabling British industry to compete much more efficiently in the global marketplace. Our proposals are currently being piloted in Greater Manchester with a view to becoming a model of good practice nationally. • Each LEP area should have control over its skills strategy to ensure delivery of training meets the needs of local industry. Skills for Industry 3

5. The North West on the Move How investing in the North West’s transport network will drive sustainable economic growth, regionally and nationally Report Recommendations • Exploit our existing transport assets, focusing on key corridors such as Liverpool – Manchester – Leeds and Sheffield; routes from the North West to the South East and Europe; the West Coast and M6 corridors; and Barrow’s rail link to Manchester Airport; ensure maximum benefit derived from the Northern Hub improvements. • Maintain the momentum for delivering HS2 - via Crewe - to Manchester and Manchester Airport, and Liverpool, and for the equally important TransNorth proposals. Improve local connectivity to ensure North West derives maximum benefit from these strategic investments. • Reform Air Passenger Duty to stimulate greater utilisation of Manchester Airport – supporting the growthof long-haul international routes. Also support the development of regional connectivity through Liverpool John Lennon Airport. • Develop integrated multi-modal transport, including electronic smart ticketing to cover all public transport across the North West (and in due course the North as a whole), and implement the franchising of bus services in line with Greater Manchester’s devolution agreement. • Develop a more effective and better co-ordinated rail freight strategy, so as to maximise the impact of SUPERPORT in Liverpool and across the region. Our Response • NWBLT’s priorities for theNorth West include the need for more strategic transport infrastructure planning, in Rail, Road, Air and Water. • Support the formation of ‘Transport for the North’ and work with regional leaders on a pan-Northern transport infrastructure plan, so that the key priorities are addressed in line with a co-ordinated and coherent plan for the North as a whole. Transport Investment 4

6. Exploiting the ExcellenceEngland’s North West - where world-class science underpins wealth-creating innovation Report Recommendations • Commission and produce a full Prospectus, demonstrating the investment opportunities which arise from our global leading positions in four fields: (advanced materials; energy research; cancer research; and data intensive science) and the opportunities our strength in science creates for driving manufacturing growth.. • Develop our innovation infrastructure and ecosystems so as to link our strengths in advanced materials etc; building upon our international world-class collaborations and the opportunities for establishing UK centres of excellence (e.g. Materials Institute and Energy/Precision Medicine Catapults). • Make the North West an attractive place for technology based SMEs to flourish. Work with each sub-region via the North West Fund to ensure substantial venture capital is in place to support growth in science, technology and innovation companies. Our Response • NWBLT is in the process of commissioning the Prospectus of North West Science. This will be launched in Spring 2015. • We will support the ongoing development of the region’s innovation infrastructure through the establishment of the Sir Henry Royce materials institute and other key centres of excellence in Materials, Energy, Life Sciences and Data Intensive Science. • We will encourage further development of the North West as an attractive place for science/technology based SMEs, e.g. at Alderley Park and Sci-Tech Daresbury. Science Technology & Innovation 5

7. 6 Creating Business Advantage by 2040How England’s North West will sustain future supplies of Food, Water & Energy Report Recommendations • Create a high value manufacturing Catapult for the food and beverage sector to foster collaboration between research institutions and facilitate links with industry. • Work with United Utilities to strengthen partnerships and collaborative mechanisms to secure environmental improvements which benefit both the region’s economy and its ecology. • Develop the full spectrum of North West energy generation, opportunities and technologies, and establish an energy systems catapult to accelerate innovation in this rich and diverse energy generation asset base Our Response • NWBLT’s report launched the North West’s role in sustaining future supplies of food, water and energy at the UK’s International Festival for Business, held in Liverpool in June 2014. • Our focus is on the role of food producers, the water industry and the energy sector in securing future supplies of essential resources. • We believe interconnection of these three resources not only offers the key to future security but also opens up business opportunities for those prepared to invest in the solutions. Optimising our Essential Resources 6

8. Two Big Ideas for transforming the North West Economy A Prospectus to promote the North West’s world-leading Science, Technology and Advanced Manufacturing Harnessing the full potential of the North West’s Energy Resources • The region’s rapidly-growing excellence in advanced materials such as graphene, and in energy, bioscience and supercomputing - combined with its established position as the UK’s leading manufacturing region - offers the prospect of the North West benefiting from a truly world-class collaborative eco-system for 21st century science and technology-based manufacturing. • Examples of the North West’s established and emerging excellence include:- • The National Graphene Institute and the new Sir Henry Royce advanced materials institute centred upon Manchester University • Sci-Tech Daresbury’sHartree (one of the world’s fastest supercomputers) and other leading facilities for data intensive science and digital manufacturing • Britain’s Energy Coast – world-class nuclear research excellence • Manchester Science Parks’ Alderley Park ‘Bio Hub’ • Europe’s largest biomanufacturing cluster at Speke, Liverpool • Globally leading cancer research at Liverpool and Manchester, including the Clatterbridge and Christie hospitals • The Liverpool School of Tropical Medicine, with world-leading expertise in malaria, ebola and other tropical diseases • The Lancaster Environment Centre and Global Eco-Innovation Programme • Manchester University’s Jodrell Bank observatory and world-leading Astrophysics Centre • Thornton Science Park – the University of Chester’s rapidly-developing energy and technology research centre (formerly Shell UK) • The co-location of these, and other, world-class research centres within England’s North West, coupled with the region’s manufacturing and exporting capability, offers exciting opportunities for growth in these vitally important areas of 21st century science. The NWBLT is working with regional partners to better promote these capabilities and drive further investment. The North West is fortunate in already having a wealth of power-generation assets, combined with the skills and experience across the full spectrum of key technologies including gas, nuclear and wind. In addition, it is now in a strong position to accelerate further renewable power regeneration through Britain’s Energy Coast, whilst the region has significant shale gas reserves which could substantially improve future energy security. We welcomed the announcement in the Chancellor’s 2014 Autumn Statement of proposals for a shale long-term regional investment fund – “Sovereign Wealth Fund” - and for a National College for Onshore Oil and Gas in Blackpool. Looking further ahead, the North West coast offers very considerable potential for tidal power generation in the future. NWBLT demonstrated the region’s potential for a combined tidal energy and road link scheme at the International Festival for Business in Liverpool 2014 and is well placed to explore this idea further through its investment in North West Energy Squared. Working with colleagues from the water and food industries, NWBLT expects the North West’s sufficiency in each of these essential resources will offer substantial competitive advantages in the years ahead. To fully exploit this competitive advantage, and contribute to a successful and sustainable energy strategy for the UK as a whole, we strongly support the establishment of a North West Energy Systems and Innovation Catapult in the region. 7

9. More power to the North – driving growth into the 2020s • The benefitsof devolution in the North West • Substantial devolution of administrative powers to our Northern cities can be expected to result in much greater efficiencies as well as substantial regional and national economic growth. • Alongside support for the proposed High Speed rail connections, and a policy of investment in our world-class scientific research and technologies, we expect these measures to boost the rate of economic growth in the North West to levels comparable with those currently achieved by the UK as a whole. Estimates show that this would mean an overall economic benefit to the UK Exchequer, from the North West alone, approaching £30 billion over 20 years. • Longer term strategic planning on major infrastructure investment, aligned with national strategies and with appropriate governance arrangements, is required if we are to remain competitive in the years to come. • The case for devolution in the North West • 2014 witnessed a rapid rise in the level of support for devolution of powers to the regions and cities. The momentum generated by Scottish referendum is now being matched with a new approach to English government, offering major Northern cities and city regions much greater autonomy and funding. • The population of the North West – at a little over 7 million compared to Scotland’s 5.3 million - means that the corresponding benefits to the overall UK economy should be at least as great as Scottish devolution. • The “Northern Powerhouse” and “One North” propositions demonstrate just how much could be achieved in terms of economic benefit for the North of England through the granting of more power and autonomy to the major Northern cities. • We therefore strongly support the agreement reached by the Greater Manchester Combined Authority with UK Government for fiscal devolution, with devolved responsibilities for local transport, planning, health, housing and skills and a pledge to make Manchester a Science Capital. We look forward to the prospect of appropriate agreements being reached as early as possible for the Liverpool City Region and other major Northern cities. 8

10. Role of the North West Business Leadership Team • Background • The North West Business Leadership Team (NWBLT) is an independent group of influential business leaders, who work together to promote the sustainable economic development and long-term well-being of North West England. It was launched by HRH The Prince of Wales at Blackburn in July 1989. • NWBLT’s membership is made up of senior executives from the region’s major businesses. It operates as an independent business voice for the whole North West, thus providing valuable strategic support for the region’s Local Enterprise Partnerships. • Activities • NWBLT members recently undertook a programme of thought leadership, publishing four papers addressing issues of major concern to North West business, covering Skills for Industry;Transport Investment;Science, Technology and Innovation; and Optimising our Essential Resources. • We hold regular meetings with North West MPs in the House of Commons to discuss these topics. • Dedicated task forces of NWBLT members are taking forward the commitments and recommendations set out in the published reports. The time has come for a more forward-looking and innovative approach to public policy, with a view to maximising the full economic potential of the North West. • NWBLT also sponsors and administers the annual Lever Prize to stimulate collaboration between the North West’s cultural and business communities (with support from Arts & Business) and an annual Schools Science Competition for pupils from years 7 and 8 in North West schools. • Get involved • We welcome hearing from business leaders and representatives of organisations who share our vision of working together and contributing to the success of the North West as a great place in which to live and work. • Our Business Leadership Forum is open to anybody with a bona fide interest in the long-term well-being of the region. Details of how to join can be found at the Forum section of the NWBLT website (www.nwblt.co.uk). • For further information, contact:- • The North West Business Leadership Team, Daresbury Laboratory, Sci-Tech Daresbury, Keckwick Lane, Daresbury, Warrington WA4 4AD • Telephone 01925 212078. www.nwblt.co.uk Twitter @NWBLT 9