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Economic Development

Northern Powerhouse will fail without action on skills gap, business leader warns

CBI regional director Sarah Glendinning was speaking after poll showed growing frustrations among businesses

Sarah Glendinning, director, CBI North East

The Northern Powerhouse is likely to fail unless the Government acts to shut a skills gap in the region, a North East business leader has said.

CBI regional director Sarah Glendinning was speaking after research commissioned by her organisation to mark the fifth anniversary of the Northern Powerhouse showed that almost two-thirds of North East firms say limited access to labour is a threat to competitiveness, while 84% of the region’s firms reported they are struggling to access the skills they need to succeed.

Nationally, CBI polling showed nearly half of º£½ÇÊÓÆµ businesses said that the º£½ÇÊÓÆµ has become a less attractive place to invest and do business over the past five years, while six in 10 firms are concerned about access to enough labour as the Government moves to a new immigration system after Brexit.

Mr Glendinning’s comments reflect growing concerns and frustrations in the North East business community about a range of issues, with figures out last week showing a widening unemployment gap between the North East and the rest of the country.

The Journal has joined a group of newspapers across the region in the Power Up The North campaign, which is calling on the main political parties to spell out what they intend to do to narrow the North-South divide.

Ms Glendinning said: “These figures paint a worrying picture that threatens to give the Northern Powerhouse a major power shortage. Reversing this trend means plugging the skills gap that is hampering the Northern Powerhouse.

“The North East is full of brilliant and talented people - of all ages - and we need to give them the help and skills to let them thrive - at every stage of their lives.

“Provision of education can come down to cold hard cash but we must continue to build on the success of programmes like the North East LEP’s North East Ambition to allow every young person achieve their potential, as well as supporting projects like fuller working lives.