News story

Long Term Economic Plan for Yorkshire and Northern Lincolnshire announced

This news article was published under the 2010 to 2015 Conservative and Liberal Democrat coalition government

Jobs, transport, manufacturing, science, tourism and governance at the heart of six point Long Term Economic Plan for the region.

The Prime Minister and Chancellor today (Thursday 5 February) set out their six-point long term economic plan for Yorkshire and Northern Lincolnshire showing what has been delivered, what is underway and what more can be done to support the regional economy in the long term.

The pair met up to deliver speeches at the former home of Yorkshire Chemicals – now AQL – to set out the detailed plan as part of a day-long tour of the region.

The plan aims to:

  1. Increase the size of the Yorkshire and Northern Lincolnshire economy by an extra £13 billion in real terms by 2030, equivalent to over £2,000 per person – by increasing the long term growth rate of Yorkshire and Northern Lincolnshire to at least the long term growth rate of the whole of the UK

  2. Raise the employment rate of Yorkshire and Northern Lincolnshire so that there are over 100,000 more people in employment here during the next Parliament – by backing business growth, business investment and business start-ups

  3. Deliver at least £6.4 billion of investment in transport in Yorkshire and Northern Lincolnshire – including the electrification of existing rail lines, new and faster trains, and a major upgrade to key road routes like the M62 across the whole region. This is on top of the huge investment in new high speed connections from the north of England to the south and the potential for investment in high speed connections east to west across the north of England

  4. Back the core strengths of Yorkshire and Northern Lincolnshire’s economy – with major new investments in scientific excellence, and a particular focus on renewable energy on the Humber, food production in North Yorkshire, advanced manufacturing in South Yorkshire, finance and tech in West Yorkshire, and an assurance that local people can get the high end skills they need to secure great careers

  5. Raise the quality of life in Yorkshire and Northern Lincolnshire – by supporting its unique cultural, creative and sporting strengths, cementing its position as the UK home of road cycling, backing its great galleries while also building up to 20,000 new homes and improving education outcomes in the region’s schools, so over 95,000 more pupils attend outstanding schools

  6. Devolve greater powers the great cities and counties of Yorkshire – by continuing work on the recent Sheffield City Region devolution agreement, and working towards a devolution deal for West Yorkshire too

There are no quick fixes to achieving these important goals, so the Prime Minister and Chancellor are also setting out a specific timetable to deliver the key concepts of this plan over the five years of the next parliament, and the following decade (more info below).

As important next steps in the plan for Yorkshire and Northern Lincolnshire, the pair announced a number of new measures to improve transport links, invest in the science, renewables and technology industries, back cycling and tourism, and improve governance:

  • Creating a more modern rail network in Yorkshire by looking at the case for providing the infrastructure needed to allow the new East Coast InterCity Express trains to run at 140mph, by supporting the private sector contribution to make the electrification of the Selby to Hull railway line a reality, and by asking Sir David Higgins to produce an interim report on the future of Leeds Station by autumn 2015

  • Working with leading employers to support Yorkshire and Northern Lincolnshire’s manufacturing, science, and technology sectors including by further developing the skills base with £17.5 million of new funding for SMEs across the West Yorkshire Combined Authority to develop their workforces, and a new renewable industries University Technical College in Hull

  • Backing British cycling and supporting the culture and tourism sector with £1.5 million to help Welcome to Yorkshire, a further £1.5 million to help bring the Turner Prize to Hull in 2017 and support for any bid to bring the Cycling World Championships to Yorkshire - as well as £450,000 towards creating a new cycle gateway to the Yorkshire Dales National Park

  • Improve governance across the region by announcing that the government will conclude a new Devolution Deal with West Yorkshire Combined Authority by the Budget, following the successful Devolution Deal signed with Sheffield in December

As both the Prime Minister and Chancellor have set out clearly, the only way for the UK’s recovery to be truly sustainable is for it to be truly national.

While the challenge is significant, so is the prize ahead. By pursuing this plan, the Prime Minister and Chancellor aim to achieve real outcomes for the people of Yorkshire and Northern Lincolnshire, who have already seen the fastest private sector employment growth outside of London and the fastest growth in productivity in the UK.

The Prime Minister and Chancellor will be visiting a variety of businesses and institutions across Yorkshire and Northern Lincolnshire to hear how the government’s long term economic plan is delivering for them and what more can be done to support the region.

The Chancellor started the day with a visit to the Yorkshire Dales while the Prime Minister visited the Capital Park link road in Goole, before the pair met up to deliver speeches at the former home of Yorkshire Chemicals.

They will then visit one of the region’s most iconic venues before visiting an advanced manufacturer. The day will end with a visit to one of Yorkshire’s largest employers.

Prime Minister, David Cameron said:

Our long-term economic plan for Yorkshire and Northern Lincolnshire, which will create more jobs and financial security for hardworking people across the region, is a key part of our work to build a Northern Powerhouse that can take on the world.

The North is growing and by ensuring we have world-class infrastructure, backing business and supporting the industries of the future, we are determined to go even further.

Chancellor of the Exchequer, George Osborne said:

We want a truly national economic recovery. The evidence is that this is happening. Yorkshire is growing and creating jobs and on many measures doing so more quickly than the rest of the country.

Now we need to sustain this and remove the decade’s old North and South divide. That is why the Prime Minister and I are here today setting out how we will build a Northern Powerhouse.

Our long term economic plan for Yorkshire and Northern Lincolnshire will create 100,000 new jobs, boost the region’s growth by up to £13 billion and significantly improve the quality of life.

Further information: timetable for action and implementation in Yorkshire and Northern Lincolnshire 2015-2030

2015

Transport

  • The Government is working with Transport for the North to produce a comprehensive transport strategy for the region. The strategy will provide further details for a High Speed 3 east-west rail connection. An interim report will be published in March
  • Between 2015 and 2019, Government will use a £240m Connectivity Fund to transform services on the East Coast mainline
  • The specification of the next Northern and Trans-Pennine Express rail franchises will be released. Plans include increasing capacity by 20%, new trains, investment in stations and a phasing out of the outdated pacer trains
  • The new East Coast rail franchise will commence with an 8 year deal giving passengers between London and Edinburgh more seats, and more services and will use the new InterCity Express (IEP) trains introduced in 2017. The first IEP train from the production line will arrive in the UK for testing
  • Sir David Higgins will produce an interim report on the future of Leeds Station by the autumn
  • Network Rail and DFT will begin talks to develop a business case which will consider the infrastructure improvements to make 140mph running on the East Coast possible
  • Nine road projects to tackle congestion in Yorkshire will complete between by the end of March. These schemes will tackle congestion in Wakefield, Doncaster, Sheffield, Rothwell, Normanton, Castleford, Sheffield, Goole and Leeds
  • Work will continue on the Doncaster site of the new National College for High Speed Rail. The college is expected to create as many as 2,000 apprenticeship opportunities
  • Funding from the Local Growth Fund will be unlocked, devolving at least £12billion between 2015/16 and 2021. West Yorkshire Combined Authority is expected to draw £180 million from the Fund to support its ambitions for the West Yorkshire Plus Transport Fund. This is in addition to the £181 million already awarded through the Leeds City Deal

Manufacturing, science and innovation

  • Sheffield University will receive £30 million between 2015 and 2020 as one of the 6 core university partners of the new advanced materials Henry Royce Institute to conduct research in the field of advanced manufacturing
  • £3.8 million has been committed towards the development of the Digital Health University Enterprise Zone between Bradford and West Yorkshire Combined Authority aimed at supporting growth of knowledge intensive businesses in Yorkshire and Northern Lincolnshire. £27,397 will be disbursed in the financial year 2014-15 as part of this £3.8 million investment. The Enterprise Zone will create 60 new business and 375 new jobs by 2019
  • Government will invest £10 million in the development of the Advanced Manufacturing Research Centre 2050 Factory in Sheffield as part of a larger £43 million investment partnership between the University of Sheffield and companies in the Advanced Manufacturing Research Centre (AMRC)
  • Government will invest £24 million in a Quantum Technology Hub at the University of York. The hub will specialise in in developing quantum communications technology, to reach new markets. The Hub will be launched in June 2015, with the investment for funding new equipment and research
  • The Government is supporting the delivery of agricultural technology projects across the region with grants worth over £2.5 million already committed to partners through the Agri-Tech Catalyst
  • Between 2015 and 2021 the Government will invest in tailored business support throughout the West Yorkshire Combined Authority to help small and medium sized enterprises increase their productivity and competitiveness
  • A new University Technical College (UTC) will be established in Yorkshire. The Ron Dearing UTC in Hull will be sponsored by The Spencer Group and the University of Hull, in partnership with Siemens, the KCOM Group and Ebuyer. It will specialise in digital technology and mechatronics (mechanical, electrical, telecommunications and computer engineering), with capacity for 600 students
  • Mark Walport will work with leading scientists to help key science, university, civic and business figures in the region to develop the most exciting and high impact proposals possible for new science investments
  • Innovate Finance’s CEO, Claire Cockerton, will produce a report on how the Government can support the development of the Fin Tech sector outside of the City, building on Leeds’ status as the second financial services centre in the UK

Quality of life

  • £26.1 million will be spent in the financial year 2014 -15 as part of £190.9 million Yorkshire and Humber Construction programme to protect houses in the region from flood risk. It is forecast that 25,886 houses will experience a reduction in flood risk
  • £5.6 million in the financial year 2014-15 will be spent as part of the £137.4 million Yorkshire and Humber development programme on better protecting homes in the region from flood risk. 46,024 houses are forecast to experience a reduction in flood risk
  • Regional Schools Commissioners operating in the region will receive £3.3 million in the financial year 2015/2016 to support the very best academy chains to expand into local authorities with the weakest educational provision
  • Free public wifi will go live in 145 public buildings across Leeds and Bradford from March, and 28 in York. Wifi is already available on 80 buses in the York area and on routes between Leeds and Bradford
  • Contracts will be signed to expand superfast broadband coverage to 95% by 2017. It has reached more than 200,000 premises in the region to date
  • Technology pilots, including one in North Yorkshire, will test innovative ways to bring coverage to the final 5% of premises
  • The Humber Gateway offshore wind farm is due to come online, supported by the government’s Renewables Obligation. It will produce enough energy to power up to 170,000 UK homes, which is more than one and a half times the number of homes in Hull
  • The Government is investing £17.5 million from the Employer Ownership Pilot to support workforce development in SMEs in the West Yorkshire Combined Authority
  • Government will provide £450,000 to the Yorkshire Dales National Park towards a project to make the Leeds and Liverpool Canal into a cycle gateway from Skipton to the Yorkshire Dales
  • Government has shortlisted 5 bids for Housing Zones in Yorkshire and Humber. These include the Aire River Housing Zone in Wakefield, which proposes to build 1,200 new homes on a former chemical works and a vacant Nestle factory, and the York Central Housing Zone, which proposes to build 1,100 homes on the city’s largest brownfield regeneration site
  • Government will support the construction of 20,000 new, quality homes across Yorkshire and northern Lincolnshire through investing in infrastructure to unblock large stalled sites, helping developers to access finance and investing in new affordable housing

Governance

  • Following the Devolution Deal signed with Sheffield in December, the Government will conclude a new Devolution Deal with the West Yorkshire Combined Authority by Budget 2015, to help it achieve its aspirations of accelerating output growth, skilling people up and creating new jobs

2016

Transport

  • The new Northern and Trans Pennine Express rail franchises will commence in 2016, providing 20 per cent additional capacity, new trains, investment in stations and will lead to a phasing out of the outdated pacer trains
  • Construction of the new National College for High Speed Rail site in Doncaster will continue

Manufacturing, science and technology

  • Government will contribute £1.2 million in the financial year 2015-16 as part of its £3.8 million investment in the Bradford – Leeds University Enterprise Zones
  • Government expects to contribute £6.4 million towards Quantum Technology research at York in the financial year 2015-16
  • Siemens and Associated British Ports’ world leading offshore wind turbine manufacturing facility will begin operations in Hull supporting 1000 jobs

Quality of life

  • Large Sites Infrastructure Fund - further schemes will move into contract by March 2016
  • £26 million will be spent as part of £190.9 million Yorkshire and Humber Construction Programme to protect houses in the region from flood risk in the financial year 2015-16
  • £5.8 million will be spent in the financial year 2015-16 on better protecting homes in the region from flood risk, as part of the £137.4 million Yorkshire and Humber development programme
  • £1.5 million funding for the refurbishment of the Ferens Gallery in Hull to support Hull’s aspiration to host the Turner prize as part of the UK City of Culture programme in 2017 and help create a lasting cultural legacy. Government will provide £1.5 million to Welcome to Yorkshire to support the Yorkshire Festival and a new rural marketing campaign

2017

Transport

  • HS2 Skills College is scheduled to open in 2017, bringing significant benefits to Doncaster and the region

Manufacturing, science and technology

  • Government expects to contribute £2.5 million as part of its £3.8 million investment in the Bradford – Leeds University Enterprise Zones in the financial year 2016-17
  • Government expects to contribute £3.8 million towards Quantum Technology research at York in the financial year 2016-17

Quality of life

  • Investments under the Builders Finance Fund will be completed. 24 schemes in the Yorkshire and Humber region have been shortlisted; if selected, these could deliver 1,800 new homes
  • £24.8 million will be spent in the financial year 2016-17 as part of the £190.9 million Yorkshire and Humber Construction programme, to protect houses in the region from flood risk
  • £17 million will be spent on better protecting homes in the region from flood risk, as part of the £137.4 million Yorkshire and Humber region Development programme
  • Superfast broadband coverage is expected to reach 95%

2018

Transport

  • The first East Coast IEP trains will come into service. The £2.7billion IEP trains will boost capacity by 18 per cent, improving train reliability by a factor of five. The faster trains will enable a reduction in journey times between London, Leeds, Newcastle and Edinburgh from 2019

Manufacturing, science and technology

  • Government expects to contribute £3.2 million towards Quantum Technology research at York in the financial year 2017-18

Quality of life

  • £25 million will be spent in the financial year 2017-18 as part of £190.9 million Yorkshire and Humber Construction programme to protect houses in the region from flood risk
  • £30.3 million will be spent in the financial year 2017-18 on better protecting homes in the region from flood risk, as part of the £137.4 million Yorkshire and Humber development programme

2019

Transport

  • An improved East Coast timetable should be introduced from May 2019 featuring faster services, new direct services and improved weekend services including:
    • Additional and faster services between Leeds and London;
    • Two-hourly direct weekday services between Bradford, Harrogate, Lincoln and London;
    • New direct weekday peak-time services between Huddersfield and London;
    • Improved Saturday and Sunday timetables, with more trains and faster services between Leeds and London, faster journey times between Edinburgh, Newcastle and London, a two-hourly direct service between Harrogate and London, and a two-hourly direct service between Lincoln and London

Manufacturing, science and technology

  • Government expects to have created 60 new business and 375 new jobs through the Leeds – Bradford University Enterprise Zone by March 2019
  • Government expect to contribute £3.5 million towards Quantum Technology research at York in the financial year 2018-19

Quality of life

  • £25.7 million to be spent as part of £190.9 million Yorkshire and Humber Construction programme to protect houses in the region from flood risk
  • £32 million as part of the £137.4 million Yorkshire and Humber development programme will be spent in the financial year 2018-19 on better protecting homes in the region from flood risk

2020

Manufacturing, science and technology

  • Government expects to contribute £2.6 million towards Quantum Technology research at York in the financial year 2019-20
  • £19.8 million will be spent as part of a £190 million Yorkshire and Humber construction programme protecting houses in the region from flood risk
  • £27.1 million will be spent as part of the £190 million Yorkshire and Humber development programme protecting houses in the region from flood risk

2021-2030

Transport

  • Phase 2 of HS2 is scheduled to commence construction in the mid-2020s. Phase 2, joining Birmingham with Manchester and Leeds, represents a £21.2billion investment and will support at least 60,000 jobs in the Midlands and North
  • Phase 2 will open in its entirety in 2033, transforming journey times across the North. Travelling to Leeds from Birmingham will take 61 minutes less than it currently does and it will take only 1hr 23 minutes to get from Leeds to London
  • The A1 (M) Doncaster bypass will provide additional lane of capacity for the A1 (M) around Doncaster, upgrading the oldest stretch of 2 lane motorway still in service. This will relieve local congestion and provide the capacity needed to make the A1 an alternative (and better) strategic route to the north east. It is expected that construction will begin in the period after 2019/20
  • Work on M1 Junctions 35A-39 will commence. Smart motorways are a new system which includes an extra lane to manage the flow of traffic and improve motorway safety. Smart motorways will link the existing SM sections around Sheffield and Leeds, which in turn connects up the trans-Pennine stretches identified in Road Investment Strategy 1 and the London to Yorkshire route planned for Road Investment Strategy 2. The scheme is expected to begin after 2021
  • Upgrade the A1 (A1 Redhouse to Darrington) in South Yorkshire to raise the last non-motorway section to motorway standard will begin after 2021. The upgrade will create an alternative strategic route from the Midlands to the north east, bypassing Leeds and Sheffield and improving conditions in these areas
  • M1 Junctions 35A-39 - Upgrading this section of road will allow smart motorway running all the way from junction 32 to junction 42 (M62 interchange). The scheme is expected to begin after 2021
  • The last tranche of the Local Growth Fund will be unlocked. West Yorkshire Combined Authority, as an example, will be to draw upon up to £361m to support its ambitions for the West Yorkshire Plus Transport Fund and £4 million will have been provided for a Connecting the City Bridge over the A63 at Hull Marina

Manufacturing, science and technology

  • £2 billion of government investment will be unlocked in 2020/21 – the final tranche of the Local Growth Fund. Some of the funding received by Local Enterprise Partnerships will have boosted technology and science. For instance, the government has committed £8.2 million for a National Agri-Food Innovation Campus and £5 million for a York Bio Hub, supporting Yorkshire, North Yorkshire and East Riding LEPs’ ambitions to be a global leader in food, agri-tech, and bio-renewables. Furthermore, over £4 million will have been spent on a package of skills projects supporting the Humber’s plans to become a Centre of Excellence for Energy Skills
  • The final instalment of funding committed through Growth Deals will be released in 2021, and is expected to support more projects in Yorkshire and northern Lincolnshire

Quality of life

  • £13.6 million will be spent in the financial year 2020-2021 as part of the £190.9 million Yorkshire and Humber Construction programme to protect houses in the region from flood risk
  • £16.9 million will be spent in the financial year 2020-21 on better protecting homes in the region from flood risk, as part of the Yorkshire and Humber development programme
  • By end of 2021, £13.3 million will be invested in flood defence measures at Lincolnshire Lakes to bring forward 6,000 new homes. £2.3 million will be put towards road and other transport improvements to enable housing growth at Middle-Deepdale in Scarborough, and £1.7 million to create York Central – a regeneration site that will accommodate housing, office, retail and leisure within a 1 million square feet urban extension