There are fresh fears Yorkshire and the Humber is being left behind as new figures showed the dominance of London’s economy while regions continue to struggle.
Statistics from Ernst & Young show the capital is attracting 45 per cent of inward investment projects in the UK, but Yorkshire and the Humber’s share has dropped from 4 per cent to just 1 per cent.
The total of foreign direct investment projects in English regions outside London has dropped to 24 per cent below the level in 2010.
Commenting, Shadow Minister for Regional Growth Gordon Marsden MP said:
“With our economy flat-lining we urgently need action to boost jobs and growth. This new research underlines the government’s failure to get growth going across the regions and rebalance the economy. Ministers abolished the Regional Development Agencies in a chaotic way without putting in place a proper replacement and have failed to give Local Enterprise Partnerships the support and powers they need to drive local growth.
“The Tory-led government’s flagship policy, the Regional Growth Fund, has been mired in delay and confusion as winners have been left waiting – in some cases for more than a year – for their money. Labour has consistently pressed ministers to properly empower LEPs, and we are currently consulting businesses across the country on plans for regional and local banks to help small firms get the finance they need.”