Almost two months after the referendum, the shock is finally beginning to subside. But as the dust settles and people open up to the idea of a future where the UK no longer plays a role in the European Union, it’s important to take stock in what Brexit means for longer-term projects such as the Northern Powerhouse – and surprisingly, it’s not all negative.

From the moment the referendum’s result was announced, ripples were felt across the world – the value of the pound dropped, a new Prime Minister came into power, and projects looked slated to collapse under the weight of uncertainty. That doesn’t seem to the case for the Northern Powerhouse, and the positive effects Brexit could potentially have on the movement have been a hot topic in recent weeks.

Confidence in Property

One of the most prevalent areas of success in the post-referendum Powerhouse has been property – an area investors were encouraged to pursue as soon as the result was announced. As it turns out, investors listened.

Despite shaking the financial world to its very core, the referendum result has done little to slow investment in the North, with London property investors fighting to snap up areas in Liverpool and Manchester for development into high-quality rented apartments. In addition to the established ‘Northern Powerhouse Cities’, the likes of Bradford and other largely-ignored Northern cities have found themselves in the limelight.

This level of confidence from property investors is refreshing at a time when some are still doubting the viability of the Northern Powerhouse without the EU to support it. We’re clearly seeing that London is still interested, and such development projects have continued, unhampered by the result – and will continue to do so.

Foraging for Funding

Although property is flourishing, plans for devolution remain an area of major concern due to a lack of funding. Touted as a flagship policy for the movement, devolution will see cities such as Newcastle enjoying control over a pool of £3.4bn in investment cash, as well as £30m a year for the region to spend however it chooses.

Part of this funding was to be supplied by the EU, but with the UK leaving, questions have arisen as to whether or not areas such as transport, employment, and skills training in the North will suffer as a result.

There is, however, hope for successful devolution yet. Reassuring attendees at an event organised by think-tank Policy North, former MP for the Northern Powerhouse James Wharton pointed out that as the process for leaving the EU takes two years, ‘nothing will change in the immediate future’.

Rather hopefully, Wharton stated that ‘when we negotiate, we will have more of our own money available to spend as we wish’, and made clear his wishes for a continued focus on the North. Following through on devolution and sourcing new funding to make the scheme happen will be an important factor in the Powerhouse’s plans for growth – and it’s this area where many think Brexit will be advantageous.

An Opportunity for Growth

Days after the result, MP Wharton highlighted the opportunities available to the North, to build trade relations with the whole world, rather than just close neighbours. Wharton is far from alone in championing the potential for growth in an EU-free UK. Featured in the Manchester Evening News’ opinion section, Scott Fletcher of ANS highlighted how Brexit ‘revealed a division within the country’ in the differences between how London and the North voted. If utilised correctly, Scott argues, the Northern Powerhouse could be an opportunity for the government to turn the movement from ‘catchy rhetoric into meaningful policies that will drive economic growth and social mobility’.

With the appointment of Manchester’s first ever mayor later this year and the introduction of a new Northern Powerhouse minister, Andrew Percy, there are clear signs that the government hasn’t dropped the idea of pushing the Powerhouse forward. If businesses can focus on this drive and move with the movement – rather than trying to swim upstream against it – then the North could be facing its biggest opportunity for economic growth in decades.

Drawing Conclusions

On the whole, expert opinion is positive, despite initial doubt over the project’s future. There are, of course, still areas which need reassurance and attention – such as HS3 and supporting construction firms in their role in the Northern Powerhouse – but overall, it seems we’re starting to see the silver lining of the Brexit cloud.

As time goes on, we’ll be able to better assess whether or not it was a positive outcome for the region, but for now, the future is looking far from grim up North.

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