Think tank says investment in regions will boost UK economy

THE Government can boost the UK’s economy the most by investing more in “lagging” regions like the North-East, a respected international economic think tank has found.

A new report from the Organisation for Economic Co-ordination and Development (OECD) reveals how regions that lag behind national growth rates can transform their fortunes.

Following a study of 23 regions around the world including the North-East, researchers found that rather than being a drain on the economy, between 1995 and 2007 so-called lagging regions contributed more than half of the UK’s growth.

Despite this, the report, Promoting Growth in All Regions, asserts that regions continue to be behind national growth levels and missed opportunities will generate greater costs for society and the national economy.

The study concluded that investing most in current low growth areas could generate the largest return for national economies. This should not be seen a social policy, but could be justified on economic grounds, the report stated.

While infrastructure was important, researchers found that more emphasis should be placed on improving the skills and training of low-skilled workers.

The study has been seized upon by Sedgefield MP Phil Wilson.

He said: “This report highlights the importance of investment in skills and infrastructure, yet what the coalition is doing is the complete opposite of that, by abolishing the regional developments agencies for example.”

The study was also welcomed by Neil Foster, policy and campaigns officer for the Northern TUC.

He said: “This is an important and encouraging report that vindicates all of us in the North-East who believe our best days do not have to be behind us.

“Far from being a drain on the country, regions like ours are making a significant contribution to the national economy, but we can and must do so much more. “ However, he added: “If ministers now follow this pro-growth advice within this they would direct most investment in underdeveloped regions like ours and stop siphoning even more to London and the South-East. “ The Northern TUC said it planned to encourage the economic review led by Lord Adonis for the North Eastern Local Enterprise Partnership to incorporate many of the OECD report’s recommendations.

Comments (5)

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1:12pm Thu 27 Dec 12

fracker says...

Tell us something we don't know doh!!!!
Tell us something we don't know doh!!!! fracker
  • Score: 0

1:12pm Thu 27 Dec 12

fracker says...

Tell us something we don't know doh!!!!
Tell us something we don't know doh!!!! fracker
  • Score: 0

1:15pm Thu 27 Dec 12

CTRILEY says...

How much did they spend to come to this conclusion?
How much did they spend to come to this conclusion? CTRILEY
  • Score: 0

1:43pm Thu 27 Dec 12

David Lacey says...

So - when money was flowing like a river - did Labour completely fail to do anything for the North East? Why didn't they link us up to the national motorway network? Why didn't they complete the electrification of the Trans Pennine Route? Why didn't they triple lane the Western Bypass? Why didn't Teesside get its Light Rail System? Why did they cancel the A66 improvement plan?
.
Excuses on the back of a postage stamp please.
So - when money was flowing like a river - did Labour completely fail to do anything for the North East? Why didn't they link us up to the national motorway network? Why didn't they complete the electrification of the Trans Pennine Route? Why didn't they triple lane the Western Bypass? Why didn't Teesside get its Light Rail System? Why did they cancel the A66 improvement plan? . Excuses on the back of a postage stamp please. David Lacey
  • Score: 0

4:08pm Fri 28 Dec 12

Graeme_r says...

David Lacey wrote:
So - when money was flowing like a river - did Labour completely fail to do anything for the North East? Why didn't they link us up to the national motorway network? Why didn't they complete the electrification of the Trans Pennine Route? Why didn't they triple lane the Western Bypass? Why didn't Teesside get its Light Rail System? Why did they cancel the A66 improvement plan?
.
Excuses on the back of a postage stamp please.
The light railway system AKA the Tees Valley Metro is nothing more than a station refurbishment and limited station repositioning programme that seeks only to use existing railway lines and does not provide any new lines to link Guisborough, East Cleveland and Ingleby Barwick to rail travel. There has been no meaningful consultation on it and it wouldn't be wanted if more people understood the limited scope and misleading title.
[quote][p][bold]David Lacey[/bold] wrote: So - when money was flowing like a river - did Labour completely fail to do anything for the North East? Why didn't they link us up to the national motorway network? Why didn't they complete the electrification of the Trans Pennine Route? Why didn't they triple lane the Western Bypass? Why didn't Teesside get its Light Rail System? Why did they cancel the A66 improvement plan? . Excuses on the back of a postage stamp please.[/p][/quote]The light railway system AKA the Tees Valley Metro is nothing more than a station refurbishment and limited station repositioning programme that seeks only to use existing railway lines and does not provide any new lines to link Guisborough, East Cleveland and Ingleby Barwick to rail travel. There has been no meaningful consultation on it and it wouldn't be wanted if more people understood the limited scope and misleading title. Graeme_r
  • Score: 0

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