North East ‘must grasp opportunity’ to truly deliver devolution promise

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The North East “mustn’t be meek” and should instead “seize the opportunity” presented by a “once-in-a-lifetime” devolution deal.

That was the defining call from N magazine publisher NET’s headline devolution dinner.

Based upon six high-level roundtable discussions, the event showcased the NET-authored white paper – Raising the bar: A blueprint to supercharge North East growth – which sets out a business-led agenda to catalyse the region’s economic potential.

From boosting access to capital and improving transport connectivity to strengthening skills pathways and reshaping the region’s narrative, the document outlines a series of targeted actions designed to accelerate long-term growth across the North East Combined Authority’s Northumberland-to-County Durham footprint.

And to highlight its key pillars, the invite-only dinner – held at Jesmond Dene House and hosted by NET and Bdaily editor-in-chief Steven Hugill – gathered 80 of the region’s business leaders and policymakers.

Guests heard from panellists including Lee Hartley, co-founder and chief executive of Castrius Capital Partners, who acted as roundtable host and helped shape the white paper.

He said: “When you look at what Manchester has done with devolution, they’ve grasped the opportunity.

“They’re not meek – and we can’t be either.

“This is about creating a business strategy, built by business for the North East, and getting on with delivering it.

“If we do even half of it really well, we’ll be in a completely different place in ten to 15 years’ time,” said Lee, who previously founded Sunderland-headquartered national wealth management firm Fairstone.

Highlighting difficulties around access to capital, he also stressed the white paper’s proposed Northern Growth Ladder.

He added: “Each rung of the ladder is designed for a different stage of growth, from early-stage businesses right through to those looking to scale significantly.

“We’re relatively well served up to around £3 million or £4 million, but beyond that there’s a real gap.

“We want to be able to support businesses looking for £5 million through to £500 million.

“If we can bring together the right investors, the right networks and the right businesses, we can accelerate growth very quickly.”

Fellow panellist David Blair, co-founder and chief executive of Newcastle and London-based executive search and recruitment firm Blair West, emphasised the point further.

He said: “Capital doesn’t need to sit in the region – it’s there and it’s accessible – as long as there are clear paths to it.

“The biggest obstacle is knowledge, in terms of businesses understanding what funding is out there, what it looks like and how they access it.”

He added: “The early-stage funding environment in the North East has been strong for a long time, and that’s something we should recognise.

“But the opportunity is there now to build on that and create something much bigger.”

John Duns, NET business development director, addresses audience members at the white paper dinner

Fozia Saleem, chief executive of Magnitude Biosciences, which is based at NETPark, in Sedgefield, County Durham, highlighted how infrastructure remains a significant barrier to growth, particularly when it comes to attracting and retaining talent.

She said: “We’re based at NETPark, and while it works for mid-career hires, connectivity is a real issue for graduates.

“I’ve lost people because they simply couldn’t get there using public transport.

“If we’re investing in business parks and creating jobs, but people can’t access them, that becomes a real challenge for businesses trying to grow.”

Darush Dodds, director of corporate affairs and social value at Bowburn-headquartered Esh Group, focused on the importance of skills in underpinning the region’s long-term growth.

He said: “You can have all the capital in the world, but if you don’t have good people with the right skills, it doesn’t work.

“There is some really good practice out there, with businesses working closely with education providers to make sure what’s being taught is relevant.

“But if we’re going to be everything we can be as a region, we need to do a lot more.

“Every young person leaving school should understand the opportunities on their doorstep and feel inspired.

“And if we can better support SMEs to take on apprentices and develop talent, that’s where we’ll really unlock growth.”

Fozia also acknowledged the white paper’s desire to create a fresh narrative for the North East that dispels outdated stereotypes and showcases its presence as a leading place to build businesses and careers.

She added: “We’ve got fantastic technology, a strong STEM base and a great manufacturing heritage.

“The opportunity is there to bring that together and build a clear identity as a place where innovation thrives.”

Lee added: “We’ve got a massive branding issue – and we’re not helping ourselves.

“People still have an outdated view of the North East, and that’s something we need to change.

“We need to be clearer about what we’re great at and shout about it.

“It’s a fantastic place to live and a fantastic place to grow a business – we’ve got lower costs, a great lifestyle and a strong talent pool.”

Fellow panellist Matt Charman, co-founder of London-based Northcote Equity, drew comparisons with Manchester to emphasise the importance of confidence in delivering that new narrative.

He added: “There’s a real confidence in places like Manchester – sometimes even an arrogance about how good their businesses are.

“But that attitude feeds through the whole ecosystem and helps it grow.

“That sense of belief is something the North East can replicate – because it has all the ingredients.”

Rob Hamilton, North East Combined Authority assistant director for economic strategy and innovation, who attended the dinner, welcomed the white paper’s ambition and called for a co-ordinated effort to deliver meaningful change.

He said: “It’s brilliant to see this level of ambition and to have so many people championing the region and the work that’s been done.

“We need to build that coalition across the public and private sectors to turn these ideas into reality and break down barriers.

“There are real opportunities ahead in areas like clean energy and innovation, and we need to grasp them.

“But above all, it comes down to confidence – everyone has a role to play in backing the region and driving growth.”

You can download the white paper, along with reports from all six roundtable discussions, by visiting Bdaily’s Knowledge Hub via the website www.bdaily.co.uk

Alternatively, if you would like a printed copy of the white paper, email N magazine editor Steven Hugill at [email protected]