Published on : Dec 10, 2015
The accountancy giant named EY has pleaded the government for making more result-oriented manufacturing strategies in order to halt the increasing economic divide amongst London and Yorkshire. The firm asked for more resources in order to back reshoring and in order to provide support for retaining and developing technology skills outside the South East and for a more collaborated approach for trading as a national response in order to expedite regional development. EY commented in its foremost UK region and city economic forecast, which utilizes majority of the same methodology as that of the respected ITEM Club think tank.
It has been estimated that the economy of Yorkshire will expand at an average of about 1.90% per annum in total value added terms from 2015 to 2018, behind the UK average rounding to 2.3% and London being just 3%. It has been further predicted by E that Leeds is the second-fasting city expanding outside of the South in the coming years due to its focus on greater value service-based industries. It has also been forecasted that the vision of the Chancellor of Northern Powerhouse will mildly impact and might only be felt post 2020.
An interview conducted with Mark Gregory, the EY chief economist has questioned the approach of the government for enabling growth via the devolution of power on the regions. Mr Gregory stated that technology linking with the core skills of manufacturing may help raise the reshoring amount of operations via overseas to the UK. Wales, Northern Ireland, and Scotland’s devolved administrations will not emerge in the coming three years, as per EY. In addition, the city and region forecast of the UK stated that they be highly hit by spending cuts of the government.