REBUILDING AND REBALANCING THE POWERHOUSE BUILDING BACK .

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COVID-19: ROAD TO RECOVERY SERIESREBUILDING AND REBALANCING THE POWERHOUSEBUILDING BACK ANDLEVELLING UP REPORTKey Findings and RecommendationsAutumn 2020

2BUILDING BACK AND LEVELLING UP REPORTAtkins – a member of the SNC-Lavalin Group – is one ofthe world’s most respected design, engineering and projectmanagement consultancies, employing over 18,300 peopleacross the UK, North America, Middle East and Africa, AsiaPacific and Europe. Atkins helps clients plan, design andenable major capital projects, and provides expert consultancythat covers the full project lifecycle across infrastructure,transportation, nuclear and power, oil and gas, engineeringand design, water, the environment, defence, aerospace,communications, project management and architecture.For more information please contactAtkins’ Programme & Projects Delivery Director,Lawrie Quinn: lawrie.quinn@atkinsglobal.comDevoConnect is a public affairs and thought leadershipconsultancy with a difference: it has a purpose - to help buildmore and better devolution across the UK. Secretariat tothree regional APPGs and authors of key reports on the futureof devolution, DevoConnect works with public, private, andvoluntary organisations to design and deliver communicationsstrategies and thought leadership, research and intelligence,training and event management that help them communicatetheir ambitions and influence tomorrow’s decision makingprocess today.For more information please contact Chief ExecutiveGill Morris gill@devoconnect.co.ukThis summary report follows and complements the RSA “One Powerhouse: Towards a SpatialBlueprint for the North” published last year which looked at the extensive network of economic, social,environmental and urban plans across the North at various levels of spatial geography and concludedthat Government should:»»»» Invest in connectivity to consolidate the North as the UK’s leader in nationaland international tradeChampion inclusive growthPioneer the green industrial revolution through clean growthGrow innovation ecosystems

3BUILDING BACK AND LEVELLING UP REPORTLast February, theUK2070 Commission setout its 10-Point Plan toaddress city and regionalinequalities in the UK.Atkins – drawing on extensive experience of working with communities across the NorthernPowerhouse – contributed to the development of this plan by helping to identify priorities for theeconomic growth, infrastructure renewal and institutional reform needed to overcome deep-rootedinequalities that blight the lives of so many.Fast forward a year and the world was beginning itsfight against a global pandemic which continues todevastate economies and affect the everyday livesof billions.For the UK, COVID has made the regional inequalitiesthat divide our nation all the more apparent - so muchso that the Prime Minister has pledged to double downon efforts to level up Britain as we look to rebuild theeconomy and drive up productivity.As part of our commitment to the NorthernPowerhouse and regional equality, we felt it wasimportant, and timely, to convene clients, partnersand wider industry stakeholders to explore thechallenges facing the North and to set out a path forrecovery which helps rebalance opportunities, growthand prosperity.This report brings together our findings from a seriesof webinars and makes a number of recommendationswhich we hope will help guide investment and policydecisions related to housing, skills, transport and agreen recovery that is essential to achieving the UK’snet zero targets.We also hope this report further amplifies theimportance of the UK2070 Commission’s 10-PointPlan and informs a coherent long-term strategyfor the future of all cities, towns and communities,enabling them to fully unlock the talent, innovationand dynamism which will benefit the entire country.There is no doubt that the pandemic has forcedus all to ‘reset’ our thinking to some degree, as werealise that a new post-COVID normal should aspireto be better, smarter and fairer. This is an incredibleopportunity to break free from old ideas which wereholding us back and to accelerate our levellingup journey.ThanksRichard RobinsonCEO - Atkins UK & Europe

4BUILDING BACK AND LEVELLING UP REPORTREBUILDINGAND REBALANCINGTHE POWERHOUSEThe Atkins Covid-19: Road to RecoverySeries provided a high-level opportunityto debate the key challenges facing theNorth and determine what needs to bedone to rebuild and rebalance the NorthernPowerhouse on the road to recovery from theCovid-19 crisis.1BUILDING NET ZEROINNOVATION AND SOLUTIONS» What needs to be done to unlock Net Zeroinnovation and infrastructure and create thegreen jobs, skills and prosperity the Northneeds to ‘level-up’?»As the UK shifts from pandemic and recession andmoves on to recovery, the North will need to beready to step-up and influence policy and decisionmaking, and make the case for what the Northneeds to address prevailing regional economic andenvironmental disparities – rebuild and rebalance.In a post-Covid-19 post-Brexit world, if the Northis to level-up and recover it needs the power tounlock growth, improve its connectivity, invest ininnovation and infrastructure, create homes andplaces, boost jobs, skills and training, and buildback better.The Atkins Covid-19: Road to Recovery Seriesbrought together Government Ministers, MPs,Peers, industry, business and public sector leadersto address the key issues in the series: What do we need to do to stimulate a greenrecovery in the North and build back moreinclusive, green development within theNorth’s cities and towns?2BUILDING BACKBETTER TRANSPORT» What do we need to do to restore confidenceand kick start major transport infrastructureand investment?» What transport innovation and infrastructuredoes the North need to prioritise if it is to buildback better transport across the NorthernPowerhouse?3BUILD, BUILD, BUILDSKILLS AND HOUSING» How can the North lead the way to a greenrecovery through scaling-up house building,retrofitting and place making in a postCovid-19, post-Brexit world?» What are the jobs and skills the NorthernPowerhouse needs to build, build, build?

BUILDING BACK AND LEVELLING UP REPORT6 KEY RECOMMENDATIONS:123Government needs to accelerate and scale-up its investment policies and plans to ‘Build BackBetter’ and meet Net Zero targets. This means accelerating schemes which will have the greatestimpact on recovery and decarbonisation; improving confidence in delivery; and prioritising ‘green’ jobs,skills, transport and housing.Future policymaking must be focussed on the principles of inclusive growth, place-making andconnecting places. This will necessitate a greater partnership approach between national, regionaland local government as well as more devolved powers and resources.Local authorities should work in partnership with the Government as well as private and publicorganisations to co-design and deliver a fully funded pan-northern transport investmentprogramme. It is time to build confidence in infrastructure delivery and for the Government to actwith conviction, providing more certainty for investors. It is also time for the North to benefit from amore connected, integrated and subsidised transport system. This must include lower pricing andsmart ticketing as a priority for Northern passengers and business.4Government needs to commit to a jobs and skills strategy for the North so that thoseunemployed as a consequence of Covid-19 are not abandoned. There is a need to invest in the jobsand skills needed for the future and to support innovation, research and development, modernmethods of construction, supply chains, transferable skills, apprenticeships, further, higher andadult education.5Investment in housing and retrofitting in the North, as a key part of a Northern Energy Policy,should be a national priority as it would not only help deliver more affordable housing but also morejobs and training, and help reach the country’s commitment to Net Zero. Cross industry innovation –based within a Whole Systems Approach – should also be encouraged as it is required to accelerategrowth and build back better.6Getting planning reform right is a major concern – appropriate regulation is the way ahead notderegulation. The Planning White Paper unduly focuses on housing to the detriment of infrastructuremore generally. Safeguarding natural capital should be a priority. The lack of coordination betweengovernment departments and absence of a national spatial plan limits growth including privateinvestment, public procurement and overall ambition in the North.5

Session 1:BUILDINGNET ZEROINNOVATIONANDSOLUTIONS

7BUILDING BACK AND LEVELLING UP REPORTCovid-19 has emphasised the need to build back better strategic economic and environmentalplanning in our regions and across the Northern Powerhouse. If we are to build, build, buildand rebalance the economy, the UK must focus on addressing the deep and widening regionaldisparities and rebuilding opportunities for today’s and tomorrow’s generations.We know we must level-up and that local, regional and national Industrial Strategies must work together to boostregional growth and prioritise infrastructure investment. We also know that if we are to achieve the Government’s2050 climate change target, Net Zero needs to be at the heart of the UK’s economic recovery. Net Zero innovationneeds to scale-up and unlock the new green jobs and skills we need to decarbonise our housing, transport andpower supply.The North has great potential and can make a massive contribution to decarbonisation and to delivering a greenrecovery, but how can investment in Net Zero solutions be accelerated to create green jobs, skills and prosperityin the hardest hit towns, cities and regions across the North?KEY QUESTIONS ASKED:KEY CONTRIBUTORS:On the road to recovery, how can we accelerateNet Zero innovation and investment to build backand rebalance the Northern Powerhouse?More specifically: Lord Deben, Chair, Climate Change Committee Sarah Longlands, Director, IPPR North Alex Sobel MP, Chair, Net Zero APPG Henri Murison, Director, Northern PowerhousePartnership Professor Julian Allwood, UK FIRES, University ofCambridge Emma Antrobus, North West Director, Institution ofCivil Engineers Richard Blyth, Head of Policy and Practice, RTPI Viral Desai, Principal Planner, Atkins Dr Vicky Hutchinson, Director of EnvironmentPractice, Atkins Stuart McLaren, Technical Director – Net Zero, Atkins» What do we need to do to stimulate a greenrecovery in the North and build back moreinclusive, green development within the North’scities and towns?» What needs to be done to unlock Net Zeroinnovation and infrastructure and create the greenjobs, skills and prosperity the North needs to‘level-up’?» How can we unlock investment in Net Zeroinnovation in the Northern Powerhouse?» How do we scale-up Net Zero infrastructure andbuild back the Northern Powerhouse?» Will the Government’s Planning White Papersupport a green recovery and help to accelerate aNet Zero Northern Powerhouse by 2050?» Can better spatial planning and a more local,or ‘mega region’, approach accelerate Net Zeroinnovation, infrastructure and transition?» What are the Net Zero priorities for the North? Andhow and where can the North lead the way on NetZero innovation and deliver sustainable solutions?

BUILDING BACK AND LEVELLING UP REPORTOUR 6 KEY FINDINGS:123456The philosophy must be that if the entire system isn’t Net Zero, it isn’t Net Zero. There is a needto develop a whole systems approach. For example, we must make our current housing stockmore efficient instead of focusing all our efforts on new ‘smart’ homes. Similarly, we need toreskill the people made unemployed in the Covid crisis to deliver improvements to our existinghousing stock, or to help with flood defences, landscape restoration and safeguarding theregion’s natural capital.We will only reach Net Zero if we work together. Instead of each city creating a bespoke planfor Net Zero and trying to tackle it in its entirety, we could focus on where the opportunity existsfor specific Net Zero technologies and applications across larger geographic areas. In otherwords, we identify where sustainability skills already exist and where, for example, carboncapture projects are already more mature. This would avoid unnecessary competition betweencities, with each city aiming to be a ‘leader in Net Zero’, and instead focuses on the strengthsthese cities already have. It pulls together the region’s resources towards a shared Net Zerofuture and gives each city a ‘purpose’ and pride in what they’re doing to contribute to it.There is a need to have cross-industrial innovation to meet Net Zero by 2050 or sooner.This will require new regulatory frameworks and constructs to encourage investment andinnovation (both public and private sector). Investment should not only be encouraged ontechnology, but also on solutions e.g. governance, behaviour, procurement, digitising, finance,etc. Utilising big data to improve efficiency and behaviour will also be key.Investment in hydrogen and carbon capture and storage is urgently required. There is also aneed for a nuclear component. What the North needs is an energy policy and the empowermentto make decisions to accelerate progress: it cannot and should not be left to BEIS. There isreadiness and willingness to take on the responsibility. For example, we should build new nuclearwhere the jobs are necessary, first looking more closely at investment, and asking: is this locationsensible or should we locate in regions where jobs really matter and there is high demand? Thisties in with overdue reform of the Treasury Greenbook in order to ensure investment fundsare spent appropriately. It is clear that without such a holistic, joined up, national and spatial plan,private investment is inhibited. From an engineering perspective there is a need for a clear pipelineof work.There is an overarching need to safeguard the North’s natural capital. The North is hometo 70% of all England’s wetland, peat, heather and moorland, as well as many national parks.Much is in a poor state and requires restoration to prevent flooding and fires. There are alsoopportunities to create jobs through land restoration. Infrastructure can benefit biodiversitybut needs to be costed effectively. What is needed is commitment from the Government to thisagenda, followed by devolved power and resources to get the work done. There is a lot of talkregarding a ‘red wall’ but focus should instead be on building the ‘green wall’.Spatial planning is crucial and must be done in partnership with local government.Unfortunately, the Government wants to introduce new planning processes and frameworks inEngland. These proposals seem flawed as they allow lower standards for large developmentsand have no focus on sustainability objectives. It was suggested, strongly, that on the contrary,standards need to be set at a Government level; training needs to be consistent across areas;and progressive regulations need to be prescribed to encourage new ways of working andinnovative solutions – a co-ordinated whole system change process will not manifest itselfthrough market practices alone. In addition, the point was made that a person or organisationshould then ‘own’ the Net Zero vision for the pan-region and ensure it is implemented.8

Session 2:BUILDINGBACK BETTERTRANSPORT

10BUILDING BACK AND LEVELLING UP REPORTThe North needs to transform the way it connects its people and places. Decades of under-investmentin transport has only worked to widen regional inequalities and reduce the North’s growth potential.In a post-Covid-19 post-Brexit global marketplace, the Government urgently needs to accelerate itsinvestment in transport and infrastructure projects in the Northern Powerhouse.Promises to level-up and rebalance the economy are high on the Government’s recovery radar. The case forinvestment in the North’s transport infrastructure has therefore never been stronger. The Northern Powerhousehas the innovation, skills and capability to deliver ‘shovel-ready’ transport projects; infrastructure innovation andsolutions. Government needs to support plans for major upgrades, high-speed rail and infrastructure which willbuild prosperity in the cities and towns across the North – connecting people to jobs and opportunities.As we move into recovery, how we travel, transport goods, deliver services and connect must change for the better.Investing in transport is the key to unlocking the North’s full potential, rebooting the economy and building backbetter connectivity and growth.KEY QUESTIONS ASKED:CONTRIBUTORS:How do we build back better transport in thepowerhouse? More specifically, in light of Covid-19,Brexit and a green recovery: Andrew Stephenson MP, Minister of State, Departmentfor Transport Kevin Hollinrake MP, Co-Chair, Northern PowerhouseAPPG Baroness Randerson, Liberal Democrat Spokespersonfor Transport, House of Lords Steven Broomhead, Chief Executive, WarringtonBorough Council Kate Jennings, Policy Director, Railway IndustryAssociation Mike Emmerich, Founding Director, Metro Dynamics Jonathan Spruce, Director, Fore Consulting Lorna Pimlott, Sponsorship and Policy Director, HS2Ltd Henri Murison, Director, Northern PowerhousePartnership Penny Marshall, North East and Yorkshire and HumberDirector, Institution of Civil Engineers Matthew Grigor, Public Affairs Manager, AssociatedBritish Ports Jake Kelly, Public Affairs Executive, Civil EngineersContractors Association Simon Bennett, Business Development Manager,Abellio Paul Beckford, Consultant, PB Consulting Lizi Stewart, Director of Transportation, Atkins Jason Pavey, Market Director, Rail - Atkins Julie Hurley, Client Account Director, NorthernPowerhouse – Atkins» What powers and investment do we need fromGovernment to unlock connectivity and growthacross the North and rebalance the economy?» What do we need to do to restore confidenceand kick start major transport infrastructure andinvestment?» What transport innovation and infrastructure doesthe North need to prioritise if it is to build back bettertransport across the Northern Powerhouse?» Will the Northern Transport Accelerator Councilbe the “rocket booster” required to deliver majortransport plans in the North?» What kind of jobs, skills and training do we now needto build back better transport and connectivity?» How do we decarbonise transport and lead the wayon Net Zero innovation and solutions?» What local government funding and support shouldthe Government be giving to meet the challenge ofchanging travel demands and manage and mitigaterisk caused by the pandemic?» Will the Government commit to major transportinfrastructure upgrades and projects like HS2 in fulland boost investor confidence? Stuart McLaren, Technical Director – Net Zero, Atkins

BUILDING BACK AND LEVELLING UP REPORTOUR 6 KEY FINDINGS:123456Atkins’ post-Covid survey showed that transportation companies have seen over a quarter of their workreduced, postponed or cancelled, with private sector businesses reporting an average 31% drop in revenue.While road usage is increasing, public transport figures are still far below what they were pre-Covid.The Atkins survey also showed that in the transportation sector, only half of respondents expected theindustry to recover to pre-crisis levels by Q4 2021. The long road to recovery gives us the opportunity tobuild back better transport, rethink the way we work and redefine why our transport is so essential to theUK – both to people and the economy. In fact, a 50-year view is now possible – a future where rail can beclean and green and public transport is seen as fundamental to local connectivity as well as safety.Levelling up the North is one of the Government’s key policy goals. Inequality is a drag on economicefficiency and growth, and some regions are cut off from jo

BUILDING BACK AND LEVELLING UP REPORT 7 Covid-19 has emphasised the need to build back better strategic economic and environmental planning in our regions and across the Northern Powerhouse. If we are to build, build, build and rebalance the economy, the UK must focus on addressing the deep and widening regional

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