The Business, Energy and Industrial Strategy
Committee has today launched an
inquiry into business investment and growth in all parts
of the UK, beyond areas of heavy investment such as London and
the South East. The Committee will be examining the Government
support available for businesses and how best to attract inward
investment to parts of the country with lower productivity.
Today, the BEIS Committee has also published
correspondence from the Department for Business, Energy
and Industrial Strategy, showing a breakdown of regional funding
from the British Business Bank, which aims to increase the supply
of finance to smaller businesses. Figures show how in the year to
October 2018, companies in London received 54% more finance than
those in the North West region, despite the capital’s population
being just 15% higher.
The UK has a long-standing productivity problem, exacerbated by
wide disparities in productivity between regions in the UK. While
labour productivity is above the national average in London and
the South East, the regions of the north of England and the
midlands has productivity levels between 7% to 15% below the UK
average.1
The inquiry will be examining the barriers to establishing new
businesses, the role of regional bodies in promoting growth and
how areas are prioritised for Local Industrial Strategies.
MP, Chair of the Business,
Energy and Industrial Strategy Committee, said:
“While the Government’s Industrial Strategy aims to boost
productivity and growth throughout the country, there are too
many areas that are being left behind. Regional disparities are
increasing faster than any other major European country, meaning
vast swathes of the UK are failing to share in the prosperity of
London and the South East.
Our inquiry will be looking at what more the Government can
do to help business and whether firms in less productive areas
have the support they need to get going and grow. We want to hear
about the specific challenges businesses face as well as stories
of areas that have been successful in reducing disparities.
Greater efforts to narrow regional disparities is key if we are
to truly have an economy that works for all.”
Supporting Regional Investment and Growth – terms of
reference
Submissions can be made on the Committee’s website.
The deadline is Friday 17th May.
The Committee is inviting submissions on the following points:
- What is the
role of the Government in addressing regional disparities for
businesses across the UK? Does the devolution of powers,
including City and Region Deals, the Northern Powerhouse, and
Midlands Engine, provide LEPs and other bodies with the tools
they need to deal with the issue?
- Are there
barriers to new businesses being established in less-productive
areas? How does clustering affect other businesses in that
region, for example: are Catapult Centres widening or limiting
investment in their local areas?
- Are
businesses outside of cities able to access finance and attract
investment? How has existing support from EU structural funds
supported regional growth? Will new Government measures, such as
the Stronger Towns Fund and Shared Prosperity Fund, provide
effective support for growth in these areas?
- How does the
mobility of businesses to relocate within the UK and overseas
affect their investment in local areas? Should local and national
Government be seeking to reduce business relocation?
- Is the
Government prioritising the right areas for early Local
Industrial Strategies? Will the Strategies enable areas to tackle
productivity and growth disparities within regions?
ENDS
Notes to editors
[1] Office
for National Statistics - Regional and sub-regional productivity
in the UK: February 2019
