Utility Week

16 | 7TH - 13TH FEBRUARY 2020 | UTILITY WEEK Policy & Regulation short-term decisions in the utility sector that are going to have an impact on long-term economic growth." Water It seems the Cinderella figure at the regional growth party is the water industry. Does Murison agree, and what role does he see for water in this emerging story? "The water industry is slightly separate – fundamen- tally the North has plenty of water and, economically speaking, it is high energy costs that are a big issue for our industrial base and energy-intensive industries." (Those energy costs are not just utility costs, he says, but primarily tax and other issues.) "Opportunities to do things differently with water, are not as high up the economic agenda. However, if you look at United Utilities' recent projects to update its infrastruc- ture and replace the transfer infrastructure that brings water into Manchester, these are huge capital projects. "They are a key part of the mix in terms of the wider infrastructure sector, and investment in infrastructure is definitely one of the enablers of Northern growth because it will kick-start economic development. "So, both water and the energy sector are key infra- structure businesses. And all infrastructure gives us the competitive edge we need to do well in the global race." Growing gains The Conservative narrative around regional growth will have been welcome news for the partnership. The reality now seems to be that whoever is prime minister for the next five years and beyond, their electoral battleground will be the North of England. "It's good politics. It's also been good economics, because it's the right thing to do for the country. And it's now a political necessity, in that you can't win an elec- tion without having a proposition for the North." But this burgeoning Northern agenda hasn't come out of nowhere, explains Murison. The Northern Power- house concept has been building momentum since it was announced five years ago, as a bid to grow the Northern economy by then-chancellor George Osborne – although the initiative did go quiet under Theresa May, whose pre- miership was largely distracted by Brexit. Today, the independent Northern Powerhouse Part- nership group is chaired by Osborne (who is no longer an MP). The organisation is keen to clarify that it non- political and 100 per cent funded by business. Murison remembers a growing positivity in the North even in the days before the Northern Powerhouse came along. As someone working in the private sector at the time, it definitely felt, even then, like something was going to happen, he says. In fact, it's been a concept that, somewhat ironically given its role in election 2019, transcended politics, with Labour's John Prescott championing the Northern Way initiative a decade ago. "There has been a growing political consensus on this issue. What's different now is that rather than being the view of a few visionaries who have understood the oppor- tunity and are keen to make something happen, this is now an absolute political reality that everyone accepts." Murison quotes an analogy on this shiš in the national perspective from the NPP's vice-chair Jim O'Neill, who feels people in London are now "starting to speak with northern accents". I point to how as a result the NPP is attracting a lot of airtime. Does Murison think the regional growth nar- rative means we will be hearing more about other local collaborations, such as the Midlands Engine? It seems this is not an apt comparison. "The reality is that the North of England is the only economy in the UK that could ever provide a counterweight to London." Birmingham's economy looks both ways – to the North because of similarities in manufacturing, to Lon- don because it is becoming more and more a part of London's orbit. The North of England is distant enough, and economically different enough, to provide another economic actor. "I have great respect for the Midlands Engine, and I know it does good work, but it's a political construction. The Northern Powerhouse is an economic project that has now got political. "The North's is a more ambitious goal than wanting just to be prosperous in its own right. We are going to be equivalent to London – which is a different position altogether." Policy promise I ask if having a Minister for the Northern Powerhouse and Local Growth, a post held by Rossendale and Dar- wen MP Jake Berry, is also a shot in the arm for the North's objectives. "Jake is a really good advocate, a positive force, and has done a lot of good," says Murison. "Having a North- ern voice at the Cabinet table is something we and news- papers like the Yorkshire Post, as part of the 'Power up the North' campaign, argued for. And I think securing that, alongside having powerful voices for the North, like Rishi Sunak, chief secretary to the Treasury, has definitely made a difference in this new government." I remind Murison how when we last met, in Decem- ber, he had been on the podium at a pre-election North- ern Powerhouse conference in Manchester. Election fever was in full swing and he had pledged to hold to account whichever political party got into Downing Street over their campaign promises to North. So, is now the perfect opportunity for him to take them up on that? "If the Tories want their blue wall to continue standing, they need to put some foundations underneath it. And the Budget is their opportunity to do that." It seems it may be better to ask him again next month. Suzanne Heneghan, editor, Utility Week Interview continued from previous page In Regional Growth and Utilities so far: Are utilities part of the government's big plan? (UW, 24 January) Interview with Siemens UK CEO Carl Ennis (UW, 31 January) To come in future issues of Utility Week Generation and regional growth The community dividend A political perspective HS2 A government decision approving the first stage of the HS2 rail link, between London and Birmingham, was imminent as Utility Week went to press, despite cost estimates spiralling to more than £100 billion. The anticipated green light has been greeted with anger by many Conservative MPs and may yet face a Commons rebellion.

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