Friday 25 October 2013
Bamburgh Room, Kings Road Centre
Newcastle upon Tyne NE1 7RU
The Corporate Conquest: How should policymakers respond to economic leakage from the North East?
It is regularly stated that London is the engine of the UK’s economic growth, implying that the North East and other regions are dependent on the South.
However, new research from the High Pay Centre shows that the dominance of major corporations in key markets for everyday necessities means that consumers in the North East have little option but to spend the bulk of their income with companies who promptly transfer most of their revenue out of the region.
Global supply chains mean that only a small proportion of every pound spent with national and international businesses in the North East continues to circulate in the local economy. Spending on mobile phone use, energy bills, petrol, clothing and supermarket groceries in the North East, for example, provides little return in terms of jobs and infrastructure spending. Much of the money is ultimately used to fund lavish executive pay packages, dividends for investors and commission fees for intermediaries in the City of London.
This presents a major challenge for policy-makers already under pressure to ‘re-balance the economy’ in a region unfairly castigated for being overly-dependent on the public sector. Our event will ask:
- What are the implications of growing corporate dominance of the North East economy?
- What would represent a socially-just, economically sensible policy response at national, sub-national and local level?
- How can companies operating in the North East reduce this ‘drainage’ effect?
- What could policymakers do to support local businesses?
- And how can they encourage external companies to establish a deeper-rooted presence in the North East?
- Chi Onwurah MP for Newcastle Central,
- Ian Mearns MP for Gateshead,
- Sir Mike Darrington, Former CEO of Greggs and founder of Pro Business against Greed
- Luke Hildyard, Head of Research, High Pay Centre.
This is a joint event organised in conjunction with Millfield House.
Refreshments will be provided.