Brexit

The creation of a northern powerhouse hangs in the balance following the EU referendum result, unless international trade is addressed as a matter of urgency, the FTA has warned.

Malcolm Bingham, FTA head of policy for the north of England, said infrastructure investment in northern England over the next five years is more or less secured, barring legislative changes.

But the public vote to leave the EU could affect trade supplies between the continent and ports such as Immingham, Hull and Liverpool – which have all been identified as key to creating a so-called powerhouse.

Bingham said: “Certainly on the road and rail side of things, we have legislation that sets out the investment period for infrastructure. Therefore the immediate future is set, or it would take a change in legislation to change that approach.

“We fought hard for that early on and it’s in place and has all party support. That’s in place until 2020 on road, 2021 for railways.”

He said a change in government coupled with an economic downturn could affect the next tranche of infrastructure spending, but he added: “It’s a concern in that sense, but not as much of a concern as international trade, because that needs to be looked at urgently.

"That is part of the northern powerhouse: trade through northern ports. There are some worries on that aspect because of uncertainty of what’s likely to happen.”

His comments followed the publication of an independent economic review, which identified key capabilities across the North which could provide the foundations for closing a gap in productivity and generating new jobs.

The review identified logistics as playing a crucial role in supporting growth and development.

It said: “Logistics capability will be vital for the prime capabilities [i.e advanced manufacturing, energy, health innovation and digital sectors] to reach, service and exploit their market potentials, as well as having a complimentary role in enabling the efficiency of the wider Northern economy."

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